JP Morgan has acquired e-commerce technology specialist Investia’s majority holding in FundsHub for an undisclosed sum. FundsHub’s management and employees will also take an increased stake in the business. The FundsHub management team and JP Morgan, via JP Morgan Investor Services and JPMorgan Partners are injecting sufficient new capital into the business to take it through to profitability.
Investia and Chase Manhattan Bank’s Global Investor Services set up the business in April 2000 in a $20 million joint venture. Investia will continue to act as technology partner to FundsHub and JPMorgan. Mark Collier, chairman and CEO of Investia, said: “With the creation of FundsHub and its subsequent acquisition by JPMorgan, we have achieved validation of the Investia technology in multiple territories, languages and regulatory environments.”
With offices in London and Luxembourg, FundsHub provides outsourced technology and operations solutions for the fund distribution industry. The business targets retail banks, building societies, savings product providers and brokers across Europe. Industry experts predict that by 2004 as much as 25% of net European inflow to funds will be via funds supermarkets.
Jonathan Meggs, senior partner at JPMorgan Partners, said: “This buyout shows the commitment of JPMorgan and FundsHub’s management to the outsourcing route for fund supermarkets.”
Set up in January 1999, Investia is a financial services solutions firm with a technology development centre in California and its sales and marketing headquarters based in London.