Edmond de Rothschild has scrapped its plan to sell its asset servicing business to Apex Group after the latter failed to secure “final and unconditional regulatory approval” for the transaction, the Swiss private banking group said on Wednesday.
The deal, first announced in December 2023, would have seen Apex acquire Edmond de Rothschild’s third-party asset servicing activities in Luxembourg, including fund administration, transfer agent and custody activities for its private equity and infrastructure funds.
At the time, the companies described the transaction as strategic, aimed at strengthening Apex’s fast-growing fund servicing operations in Luxembourg and Europe. Edmond de Rothschild saw it as a way to strengthen its local capabilities in Luxembourg.
In its announcement on Wednesday, Edmond de Rothschild said the related share purchase agreement “has been terminated” and added that it “regrets the circumstances” but “reserves all its rights for further action” without elaborating.
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Instead of exiting the business, Edmond de Rothschild said it would now focus on developing its asset servicing operations internally. The group also announced the appointment of industry veteran David Claus as CEO of Edmond de Rothschild Asset Management Luxembourg and group head of asset servicing, subject to CSSF approval. Claus previously served as CEO of European Depositary Bank and spent two decades at BNY Mellon, including as its Luxembourg country head.
“His leadership and experience will be instrumental in this new chapter for our House. Providing day to day service excellence to our clients has and always will be our key focus. Edmond de Rothschild will continue to develop this business in order to maintain a differentiated and valued offering for the world’s most sophisticated investors,” said Yves Stein, CEO of Edmond de Rothschild Europe.
A spokesperson for the Apex Group declined to comment when contacted by the Luxembourg Times. The CSSF did not immediately respond to a request for comment.
