Geneva-based investment house Edmond de Rothschild has agreed to sell its third-party asset servicing operations based in Luxembourg to Apex Group, a global financial services provider. This move is a part of Edmond de Rothschild’s strategy to narrow its focus on private banking and asset management, divesting from certain non-core business activities.
Financial terms of the deal have not been disclosed.
The transaction involves Apex Group acquiring Edmond de Rothschild’s Luxembourg-based business, which includes services in fund administration, transfer agent, and custody for private equity and infrastructure funds. Following this deal, Apex Group will serve as a strategic provider for these services to Edmond de Rothschild.
The acquisition enhances Apex Group’s presence in Luxembourg, a key financial center, and expands its capabilities in regulated fund types and depositary activities. This addition also brings an increase in Apex Group’s workforce in Luxembourg, adding 115 employees to its team. The deal will lift Apex’s Luxembourg workforce to about 1,200 people, on a global one of more than 12,000 people.
‘Conviction-driven’
Yves Stein, CEO of Edmond de Rothschild Europe, stated that this agreement aligns with their focus on core business areas. “This agreement with Apex Group is a significant milestone for Edmond de Rothschild’s growth plan to reinforce our positioning as a conviction-driven investment house,” Stein, a Luxembourg national who was appointed in this role in 2019, said in a 18 December statement.
Peter Hughes,founder and CEO of Apex Group, acknowledged the addition of the new team and its impact on their operations in Luxembourg.
Both companies have expressed intentions to ensure a smooth transition for their clients and employees. Post-transaction, Edmond de Rothschild plans to maintain certain asset servicing activities, specifically in liquid funds and dedicated funds.
The finalisation of this transaction is subject to regulatory approvals and is expected to be completed by mid-2024. Legal and advisory roles were filled by Kirkland & Ellis LLP and Macquarie Capital for Apex Group, and Allen & Overy and Deloitte Luxembourg for Edmond de Rothschild, respectively.
Further reading:
- Serge Weyland to succeed Camille Thommes as Alfi DG
- Apex’s growth in Luxembourg reflects shift in landscape
- Podcast: Luxembourg finance continues to reinvent itself