Warburg Pincus to acquire stake in Santander’s custody business
A group led by FINESP Holdings II, an affiliate of private equity firm Warburg Pincus, is to acquire a 50 per cent stake in Santander’s current custody operations in Spain, Mexico and Brazil.
The remaining 50 per cent will be owned by Santander.
The investor group, which is being advised on the deal by law firm Cleary Gottlieb Steen & Hamilton, also includes Temasek, a Singapore based investment company.
The transaction is expected to close in the fourth quarter of 2014.
Santander is a leading custody provider in Spain, Brazil and Mexico, with EUR738 billion in assets under custody. The transaction values Santander’s custody operations in these countries at EUR975 million and will generate a net capital gain for the Santander Group of approximately EUR410 million, which will be used to strengthen the balance sheet.
The company will focus on enhancing the products and services provided to its customers through greater investment in its technology platform and team.
Warburg Pincus is a global private equity firm focused on growth investing with more than USD37 billion assets under management. The firm has a long standing track record in financial services investing, and has previously partnered with Banco Santander.
Banco Santander’s chief executive officer Javier Marín says: “With this alliance, Santander will significantly increase its fund administration, depositary and custody business in markets where we are already leading providers. The transaction will enable us to increase and improve the products and services we offer our clients, with a higher value-added proposition adapted to their needs.”
Daniel Zilberman, Warburg Pincus managing director and head of its European financial services group, says: “We are pleased to partner with Banco Santander and the Santander custody management team to enhance the company's focus on providing best-in-class products and services to its customers in Spain and Latin America. The custody market benefits from long term structural growth and we look forward to supporting management in accelerating the company’s growth and service offering.”
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