FE Fundinfo Acquires Fundsquare, Partners with LuxSE on Luxembourg Centre of Excellence

On Thursday 24 February 2022, FE fundinfo, a London-based global fund provider with an office in Esch-sur-Alzette (Luxembourg), and the Luxembourg Stock Exchange (LuxSE) announced a new partnership which will result in FE fundinfo’s acquisition of Fundsquare, a leading fund registration and regulatory services provider in the Grand Duchy.

Fundsquare is a wholly owned subsidiary of LuxSE and, as part of the agreement, LuxSE will become an investor in FE fundinfo.

LuxSE established Fundsquare in 2013 to facilitate cross-border fund distribution through the collection and distribution of high-quality data and information in a cost-effective manner. Today, the company provides services that streamline, standardise and facilitate cross-border investment fund distribution from inception to filing and distribution. Located on the premises of LuxSE, and supported and developed by the exchange, Fundsquare has experienced strong growth over the past years and currently has 65 employees.

Fundsquare will build on FE fundinfo’s established and growing operation in Luxembourg, which today supports the publiFund platform, a centralised platform for data and documents that connects the whole ecosystem of a fund and allows global fund managers to manage the running of the fund throughout its lifecycle.

According to the new partners, the combination of Fundsquare’s and FE fundinfo’s services is "a unique opportunity to combine two complementary businesses and create a pan-European champion in fund data, reporting and infrastructure". As part of the acquisition, FE fundinfo will establish a Centre of Excellence for regulatory reporting, based in Luxembourg. The acquisition further provides an opportunity for LuxSE and FE fundinfo to explore joint opportunities in environmental, social and governance (ESG)-related products and services, leveraging LuxSE’s experience in this domain and FE fundinfo’s own ESG capabilities from its CSSP acquisition.

With a global workforce of more than 900 experts and offices in the United Kingdom (UK), Europe, Asia and Australia, FE fundinfo is a leading independent provider of fund data and technology expertise, serving fund managers, fund distributors and financial advisers. FE fundinfo has grown rapidly organically and inorganically over recent years. Strategic acquisitions to support FE fundinfo’s broad range of clients across the investment industry have further expanded its data and technology operations, broadening and enhancing its reach in the provision and dissemination of fund data, regulatory services and supporting the overall infrastructure of the global fund industry.

Hamish Purdey, CEO of FE fundinfo, commented: "Fundsquare’s reputation as an independent fund registration and regulatory reporting champion is renowned across Europe. We believe our services are highly complementary and the deal will bring together two industry leaders in fund data and reporting. By combining our services, the scope for greater efficiencies and product innovation will dramatically increase and the industry will benefit greatly from the enhanced product and service integration. Luxembourg will house our centre of excellence for regulatory reporting with comprehensive coverage of key European fund jurisdictions. We look forward to working together to enhance our services to meet the needs of the entire investment management value chain, including fund managers, distributors, fund service providers, regulators and investors".

Julie Becker, CEO of LuxSE, added: "Fundsquare is a highly successful company, and we are extremely proud of what the team has achieved so far. To continue to support Fundsquare’s future growth and especially its international expansion, we decided to team up with a strong player able to provide the necessary resources, competences and network. We have found the best partner in FE fundinfo and we are confident that this new ownership structure will bring the Fundsquare team many new opportunities for innovation, growth and scale in a rapidly changing environment. The Luxembourg Stock Exchange will remain involved through its stake in the FE fundinfo group, and we are delighted to form an active part in the company’s ambitious growth journey, both in Luxembourg and beyond".

Maxime Aerts, Managing Director and COO of Fundsquare, concluded: "Increased digitalisation combined with constantly evolving industry-specific regulations have led to an exponential growth in data. Growing competition in the fund industry, along with a definite need for more precise governance and risk mitigation require strong data management and disclosure capabilities. We see an enormous potential for Fundsquare to expand its reach beyond what we have already achieved. We are truly looking forward to forming part of the FE fundinfo group and are eager to explore new opportunities for our clients and our people. We share FE fundinfo’s vision and global ambitions, and we are excited to be at the heart of the group’s growth strategy for our industry".