Luxembourg-based fund services firm Fuchs Asset Management, which saw its parent company enter liquidation in July, is embarking on a new chapter through a strategic partnership with Trustmoore, a fund services company headquartered in Amsterdam.
This transaction involves the acquisition of shares in Fuchs AM previously held by Fuchs & Associes Finance. Trustmoore and Timothé Fuchs, the CEO of Fuchs AM, will jointly acquire ownership of Fuchs AM. This partnership will result in a combined firm overseeing approximately 20 billion euro in assets under administration, according to a spokesman.
As part of this transformation, Fuchs AM will undergo a rebranding and will operate under the new name "Funds Avenue." The transition is subject to approval by Luxembourg's financial supervisory authority, CSSF. In July, CSSF withdrew its authorization for Fuchs & Associes to provide financial services due to "serious breaches of essential legal and regulatory requirements".
With Fuchs & Associes entering liquidation in July, the search for a buyer for its Fuchs AM intensified. Investment Officer reported on August 18 that several parties had expressed interest in acquiring Fuchs AM.
Equity participation for both parties
As part of the strategic partnership between Funds Avenue and Trustmoore, which is pending final approval from CSSF, both parties will have equity participation. Trustmoore Director Pieter Ottevanger noted, "Timothé Fuchs and Trustmoore have joined forces to buy the company’s equity previously held by FAF. We don’t disclose any details on the acquisition and/or participation figures."
Timothé Fuchs expressed in a statement that the new name symbolises "a new chapter for our company." "This alliance is a testimony to the strength of Funds Avenue’s core values and our commitment to crafting tailored financial solutions while building genuine, long-term relationships with our clients,” he added.
Trustmoore founder Steven Melkman said the transition "marks the beginning of a promising future." He highlighted the complementarity of Funds Avenue's fund management services with Trustmoore's fund administration services. Melkman said the collaboration enables both companies to offer a broader range of fund services, including risk and portfolio management, investor onboarding, fund accounting, and financial reporting services, thus streamlining the client experience.
Trustmoore, founded in 2005 in Curacao and now headquartered in Amsterdam, operates in 11 countries worldwide with approximately 300 employees. It has been active in Luxembourg since 2012, employing 40 professionals.
Rue Dicks
Following this transition, Funds Avenue, formerly Fuchs AM, is expected to grow to around 90 employees, as stated by Melkman. The Fuchs AM team will relocate to Trustmoore's offices on Rue Dicks.
Fuchs AM, now Funds Avenue, is one of the approximately 261 Alternative Investment Fund Managers, or AIFM, in Luxembourg and is subject to direct supervision by CSSF for the alternative funds it services on behalf of clients. Its serviced funds portfolio includes around 48 Reserved Alternative Investment Funds, or Raifs, research by Investment Officer has shown.
