Citi bank makes an investment in HANetf to enhance its service offerings for exchange-traded funds under private labels
In a strategic move to bolster its presence in the European Exchange-Traded Fund (ETF) market, global financial services giant Citi has secured a minority equity investment in HANetf, Europe's first and largest white-label ETF and ETC provider.
Established in 2017, HANetf has quickly made its mark, managing $7.7bn in assets under management. The London-based company currently supports 22 clients, accounting for over 16% of the 131 brands in the European ETF sector. HANetf's co-founders and co-CEOs, Hector McNeil and Nik Bienkowski, expressed their pride at adding Citi to their cap table.
The investment sees Citi join other institutional shareholders, including Elkstone, Point72 Ventures, and ThirdStream Partners. Notably, unlike Citi, HANetf's clientele may include long-standing Citi clients who specifically want the Citi name behind their business.
As part of this partnership, Citi is launching the Citi Velocity platform, developed in collaboration with HANetf. This platform aims to provide a one-stop solution for large global asset managers to launch UCITS ETFs, offering streamlined processes and support for new ETF launches. The partnership is expected to capitalise on the growing demand for ETFs and enhance HANetf's ability to serve as a key platform for asset managers looking to enter or expand within the European ETF market.
The partnership is likely to have several impacts on the European ETF market. It could potentially increase competition among existing ETF providers, lead to an increase in the number of ETF launches, and result in more sophisticated infrastructure and services. Overall, this partnership is expected to accelerate HANetf's growth plans and reinforce its position as a leading provider of white-label ETF solutions in Europe.
It's worth noting that this isn't Citi's first foray into the fintech sector. Last month, Carlyle announced a partnership with Citi to explore asset-backed financing in the fintech specialty lending sector. Andrew Jamieson, Citi's global head of ETF product, described HANetf as the "most credible" partner for this collaboration.
The Citi Velocity ETFs platform is scheduled for launch later this year. With this strategic investment, Citi is clearly positioning itself to meet the growing ETF needs of its clients and support the continued growth of the European ETF market.
[1] HANetf Press Release, [link to press release] [2] Citi Press Release, [link to press release] [3] Financial Times, [link to article] [4] CityAM, [link to article] [5] ETF Strategy, [link to article]
- Citi's strategic investment in HANetf, a leading European white-label ETF provider, marks the finance giant's entry into AI-driven fintech solutions, aiming to lend their expertise to enhance the technology behind assets under management.
- Asset managers worldwide are anticipated to benefit from the partnership between Citi and HANetf, with Citi's newly developed fintech platform, Citi Velocity, offering streamlined processes for launching UCITS ETFs.
- Recognizing HANetf's credibility, Citi has allied with the European ETF provider to extend its finance services, capitalizing on the growing demand for ETFs and bolstering its presence in the fintech specialty lending sector.
