Universal Investment Group on Wednesday announced the launch of a new Luxembourg joint venture Alumia. The firm will operate as Mifid regulated investment advisory firm providing clients with access to innovative investment strategies.
The majority stake in Alumia will be held by its management. Universal Investment, as founding partner, will hold a “significant” minority stake. Financial details were not disclosed. The Frankfurt-headquartered fund services provider said the Alumia venture will complement its position in the fund services and Super Manco sector and provide it with “dedicated fund distribution power”.
Alumia will advise a range of clients including asset managers and asset owners such as corporates and family offices. The venture will be led by David Saab as CEO. Saab has a 20-year career in banking and asset management at J.P. Morgan, Rothschild, and more recently as co-founder alongside Peter Kraus of Aperture Investors. “For asset managers, building an experienced and global sales force, while meeting regulatory requirements and also using digital channels, has steadily become more challenging and costly,” said Saab in a statement.
Active distribution
Katja Müller, Universal’s chief customer officer based in Luxembourg, said the venture will boost the firm’s active distribution capabilities. “Active distribution capabilities are a key differentiator for third-party management companies and AIFMs such as Universal Investment Group,” she said. “Partnering with Alumia is therefore an important milestone in our approach to further expand our existing distribution capabilities and boost our attractiveness as a fund service platform and ManCo.”
Universal has already made significant investments in its own fund distribution team targeting institutional investors in the German-speaking region. Alumia contributes to this with active distribution also in France, Benelux, Southern Europe and internationally.
Universal Investment said the venture is another milestone as it continues to grow with its clients, expand its business, addresses new international client groups, and thereby achieves its goal to become a leading European fund service platform and Super ManCo for all asset classes.