Should a Sovereign Wealth Fund Acquire Euroclear?

Posted on 03/30/2019

Sovereign wealth funds and Canadian pension investors have been cherry-picking investments across continental Europe in areas such as airports, industrials, and finance. Euroclear, one of the largest securities depositories on Earth, hired Goldman Sachs to explore options for current shareholders to exit, while trying to attract long-term institutional shareholders. Some shareholders that are trying to exit include Credit Suisse, the Royal Bank of Scotland, and Societe Generale. [private_standard]Moelis has been retained to find options for Euroclear’s operating company. Euroclear also had a lot of smaller shareholders in the company and could be too complex for a private equity group to acquire.

Brussels-based settlement house Euroclear is valued at around €5.9 billion. In recent times, two large exchanges acquired stakes in Euroclear, Intercontinental Exchange (ICE) and the London Stock Exchange Group, 10% and 5% respectively. However, these exchanges publicly commented a preference to remain as shareholders.