European platform Allfunds is to combine with Credit Suisse's InvestLab open architecture investment fund activities to create a wealth platform with more than €500bn (£447bn) in assets under management (AUA).
The deal, which remains subject to regulatory approval, would lead to a combined business that would distribute more than 78,000 funds and ETFs to more than 700 distributors across 45 countries.
In a statement this morning (25 June), Allfunds said the combination would allow it "to accelerate and expand its investment into the development of new services and solutions to the benefit of the funds eco-system, comprising of asset managers, fund distributors and other intermediaries".
The transaction involves the transfer of all shares in InvestLab, its team, technology and related service and distribution agreements by Credit Suisse to Allfunds Group. InvestLab's management team will take senior leadership positions within the combined business and Credit Suisse will use the platform as part of its client offering.
Allfunds will continue to operate independently, with majority ownership held by Hellman & Friedman and GIC, while Credit Suisse will become a minority shareholder with a distribution relationship with Allfunds.
The transaction is to be implemented in what Allfunds described as "staggered closings". Closing of the transfer of Credit Suisse InvestLab to Allfunds is expected during the third quarter of 2019 while the subsequent transfer of the related distribution agreements by Credit Suisse is expected to be completed in the first quarter of next year.
Allfunds CEO Juan Alcaraz said: "With the combination of InvestLab and Allfunds, we are creating a stronger player in the platform and wealth technology space. Credit Suisse is one of the most esteemed wealth management brands in the world and its co-operation with Allfunds is testament to Allfunds' attractive proposition in the sector.
"We are truly excited to welcome the InvestLab team to Allfunds. With this combination, we continue our global growth and commitment to enhance our service offering to fund houses and distributors by offering the most innovative technology, digital solutions, and data analytics available in the market."