Bank of America Merrill Lynch was able to look for a buyer for the $6.5bn (£4.89bn) MLIS Ucits platform of the company.
According to a source familiar with the matter, the platform was acquired by Generali Investments.
The MLIS (Merrill Lynch Investment Solutions) platform was established by the company to offer “innovative and added value” strategies for investors, in order to help them in meeting their investment and risk management goals through Ucits compliant funds.
Ucits (Undertaking for Collective Investments in Transferable Securities) is a regulatory framework that was brought in almost 30 years ago by the European Commission. The concept of a Ucits fund is to offer the investors across Europe various hedge-fund type products, without the risk that is commonly associated with hedge-fund investments.
The Ucits can be registered in Europe and can be sold worldwide. Ucits fund providers who are able to meet the standards will be exempt from national regulation in individual European nations.
The acquisition by Generali arrives as rumours had started to circulate that BlackFin Capital Partners, a French private equity company, had expressed its interests in purchasing the said offering earlier in the year.
In 2017, the platform itself grew by approximately 12 percent. It offered 14 Ucits hedge funds and had increased its assets by around 19 percent, despite not being able to launch any new products on the platform.
The platform itself has some major offerings, It includes a $1.8bn AQR fund and the $3.5bn Marshall Wace fund.
The Ucits platform space has been faced with consolidation this year, as the $3.4bn FundLogic platform of Morgan Stanley for third-party managers was also closed.