Universal Investment secures significant investment from CPP Investments and continues partnership with Montagu
08. September 2022
Universal Investment Group, a leading third-party management company (ManCo) and fund administration service provider, is pleased to announce that it has secured a significant investment from Canada Pension Plan Investment Board (CPP Investments), alongside existing lead investor Montagu. The investment is subject to customary regulatory clearances.
The strategic partnership of Montagu and CPP Investments is set to accelerate Universal Investment’s growth trajectory and support its ambition of becoming a leading global fund services player. Together, Montagu and CPP Investments will continue to safeguard the resilience of Universal Investment’s business model and provide it with a long-term, stable backing, from which clients, business partners, and employees will equally benefit.
Universal Investment serves both institutional investors and asset managers and is active across the three largest European fund domiciles: Germany, Ireland, and Luxembourg. The business has delivered resilient and consistent growth over the past 15 years, driven by structural tailwinds in its markets, a strong competitive positioning from its dedication to its clients, and a commitment to operational excellence.
Our development into one of the fastest growing European fund service platforms was a decisive factor for CPP Investments to invest. Backed by the great partnership with Montagu we have leveraged our full potential and have become one of the few players active in Germany, Ireland and Luxembourg, offering not only ManCo services but also fund administration and distribution services. We are delighted to welcome CPP Investments and with both investors by our side, we are excited to take on a more global perspective for the business.
The addition of CPP Investments to its investor base, with its long-term investment horizon and a clear focus on sustainable investing, is well-aligned with Universal Investment’s business model and its client base, many of whom are institutional investors, including pension funds, themselves. The strategic partnership will support Universal Investment in further driving its geographic expansion, particularly in the North American market. Furthermore, Universal Investment will continue to invest in its home markets to expand the products and services that it offers to institutional investors and asset managers. To strengthen its international growth, Universal Investment recently acquired (subject to regulatory approval) Luxembourg based European Fund Administration (EFA), a leading provider of fund administration services, private asset services, and front-, middle-, and back-office services.
Since Montagu’s investment in 2017, Universal Investment has expanded its platform, added expert capabilities, launched new best-in-class service offerings, and internationalised the business. Today, Universal Investment is the market-leading third-party Super ManCo in Germany and Luxembourg, serves over 470 clients across its core jurisdictions, and has around EUR 760 billion in assets under administration with over 1,100 employees.
Daniel Fischer, Director at Montagu added “We are delighted to welcome CPP Investments to the Universal Investment team. Our relationship with Universal Investment started several years before we completed the acquisition in 2017, and we are pleased to be able to continue the partnership while delivering a strong return for our investors. Universal Investment has performed strongly over the last five years, delivering strong growth in Germany while accelerating its expansion in Luxembourg and entering a new strategic market in Ireland. We have every reason to believe the business will go from strength to strength as it continues to expand its offering across products, asset classes and jurisdictions.”
Commenting for CPP Investments, Hafiz Lalani, Managing Director and Head of European Direct Private Equity, said “Universal Investment is a business we've followed with keen interest for many years and we have been impressed by its exceptional and resilient growth trajectory and market leading position in the European ManCo and fund administration sector. Our relationship with management and Montagu enabled us to work together to deliver a targeted, bespoke capital solution across our investment capabilities and we look forward to supporting Universal Investment in the next stage of expansion. We are confident this will deliver long-term value for Universal Investment’s customers and employees as well as CPP’s contributors and beneficiaries.”
* * *
About Universal Investment
The Universal Investment Group is one of Europe's leading fund service platforms and Super ManCos with around EUR 763 billion in assets under administration, about 2,060 mutual and special fund mandates and a workforce of more than 1,100 at locations in Frankfurt am Main, Luxembourg, Dublin, London, Hamburg and Krakow. Founded in 1968, the company is an independent platform for asset managers as well as institutional investors offering structuring and administration solutions as well as risk management for Securities, Real Estate and Alternative Investments. The companies UI labs, UI Enlyte and CAPinside complement the group’s innovative service offering. Universal Investment is a signatory of the UN Principles of Responsible Investment. (as of 31 July 2022)
Montagu is a leading mid-market private equity firm, committed to finding and growing businesses that make the world work. With deep experience in healthcare and the tech-enablement of essential businesses, Montagu brings proven growth capabilities to help companies achieve their ambitions and unlock the full potential of their business. Montagu is committed to the mid-market, with a specialist in carve-out transactions and other first-time buyout investments. ESG forms an integral part of its strategy, and its commitment to sustainable investment is fully integrated into its investment and value-creation process. Montagu partners with companies with enterprise values between EUR 150 million and EUR 2 billion and has EUR 10bn assets under management.
For more information, please visit www.montagu.com
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organisation that manages the Fund in the best interest of the more than 21 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure, and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo, and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. As per June 30, 2022, the Fund totalled CAD 523 billion.For more information, please visit www.cppinvestments.com