UBS Sells Alts Services to Japanese Bank

Mitsubishi UFJ Financial Group’s deal with the Swiss bank is expected to close in the fourth quarter of 2015.

Japan’s biggest bank has agreed to buy out UBS’ alternative fund services division in an effort to expand its investment administration premise.

Mitsubishi UFJ Financial Group (MUFG), which has $2.5 trillion in assets, said it expects the deal to close in the fourth quarter of 2015, pending regulatory approvals.

The Nikkei Asian Review reported that the acquisition will cost the Toyko-based bank about 30 billion yen ($244 million).

According to MUFG, UBS’ “strong client franchise, global footprint, and notably its strong presence in Asia” were key factors in making the decision.

“We are confident that our clients will benefit from the depth of combined resources and capabilities and from our commitment to innovation coupled with [UBS’Alternative Fund Services’] market-leading technology platform,” said Junichi Okamoto, head of MUFG’s integrated trust assets business group.

UBS Global Asset Management’s President Ulrich Koerner said the acquisition was in the best interest of the Swiss company’s “drive towards scale in fund administration.” MUFG has the “strategic focus on asset servicing” to achieve that goal, he added.

Separately, this week French banks Crédit Agricole and Société Générale (SocGen) announced plans to float Amundi Asset Management, the joint venture launched in January 2010. Now the biggest fund manager in Europe, Amundi has €954 billion in assets under management. SocGen is likely to sell its entire 20% stake in order to boost its regulatory capital buffer, the banks said in a statement. The IPO is planned for later this year.

Earlier this month, Northern Trust spun out its hedge fund and private equity business under the name 50 South Capital Advisors.

The boutique firm—still 100% owned by its parent company—will operate with $3 billion client capital under management and $1.3 billion on which to advise. In addition to specializing in private equity and hedge funds-of-funds, 50 South Capital will also advise on custom portfolios and serve as outsourced-CIO.

Related: Northern Trust Spins Off Entire Alts Operation

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