Credit Suisse to Sell InvestLab

Swiss banking giant Credit Suisse (CS) said early on Tuesday that it has signed an agreement Spain’s Allfunds Group that will create a global fund distribution platform with combined assets under administration of more than 570 billion Swiss francs ($585 billion).

As part of the deal, the duo has agreed to combine an open architecture, business-to-business investment fund platform, Credit Suisse InvestLab, with Allfunds, the world’s largest institutional fund distribution network, according to a statement.

The transaction will result in the transfer of all Credit Suisse shares in InvestLab, including the service agreements to the Allfunds Group. As a result, Credit Suisse will become a minority shareholder of up to 18% in the combined business but will have board representation.

Closing of the transfer of InvestLab is expected in the third quarter. A subsequent transfer of related distribution agreements is expected to be completed in the first quarter.

“Upon the projected closing, the transaction will have a limited regulatory capital benefit and is expected to result in a 0.5% RoTE [return on tangible equity] uplift for the financial year 2019 for this transaction alone, all other things being equal,” Credit Suisse said in the statement.

Going forward, Credit Suisse said it would utilize the combined business platform to distribute mutual funds and exchange-traded funds.

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