Sovereign wealth fund New Zealand Super has acquired a 4.99% stake in Brussels-based financial markets infrastructure provider Euroclear.
The value of the investment has not been disclosed but it is substantial as it makes NZ Super Euroclear’s fifth largest shareholder. Privately owned, Euroclear does not report the value of its business but reported a net profit of €667 million ($A1.1 billion) for 2022.
NZ Super head of direct investments Will Gordon said the investment provided a rare opportunity for the fund to increase its exposure to the global financial services sector.
“Euroclear is the leading settlement provider across a number of European and international markets,” Goodwin said. “It is an attractive, high performing asset which suits our growth profile and will help diversify our investment portfolio.”
The Euroclear group includes Euroclear Bank and International Central Securities Depositories which operates national central securities depositories in Belgium, Finland, France, Ireland, the Netherlands, Sweden and the UK. Euroclear acquired funds market businesses MFEX in 2021 and Goji in 2022.
Euroclear has around €36 trillion ($A60 trillion) in assets under custody and is Europe’s premier provider of settlement and related securities services for cross-border transactions involving domestic and international bonds, equities, derivatives and investment funds.
Euroclear chairman Francesco Vanni d’Archirafi said that, as a sovereign wealth fund with a long-term investment horizon, NZ Super was a welcome additional shareholder.
Image: Euroclear is based in Brussels.