HANetf, a European provider of white-label exchange-traded funds (ETFs) and exchange-traded commodities (ETCs), has secured a minority equity investment from Citi in HANetf Holdings Limited.
The investment sees Citi join other institutional shareholders, including Elkstone, Point72 Ventures, and ThirdStream Partners.
Under the agreement, Citi will delegate the capital markets operations for its forthcoming ETF white-label platform to HANetf.
Andrew Jamieson, Citi’s global head of ETF product, reportedly described HANetf as the “most credible” partner for this collaboration.
The Citi Velocity ETFs platform is slated for launch later this year.
HANetf plans to channel the investment into accelerating its expansion to capitalise on growing interest from European and global asset managers entering the ETF market.
Currently, HANetf supports 22 clients, accounting for over 16% of the 131 brands in the European ETF sector.
Established in 2017, HANetf introduced the white-label ETF model to Europe and has $7.7bn in assets under management.
While both Citi and HANetf will offer competing white-label services, Jamieson noted to ETF Stream that “there are clients who specifically want the Citi name behind the business. In many cases, these are long-standing Citi clients with existing relationships across the firm.”
Unlike Citi, HANetf provides distribution support to its prospective issuers.
HANetf co-founders and co-CEOs Hector McNeil and Nik Bienkowski said: “We’ve always believed that ETF white-labelling would become a core part of the asset management and servicing ecosystem as it has done so before within the broader funds industry. We’re proud to add Citi to our cap table.”
Last month, Carlyle announced partnership with Citi to explore asset-backed financing in the fintech specialty lending sector, sharing market insights and evaluating co-investment opportunities.
"Citi invests in HANetf to bolster ETF white-label services" was originally created and published by Private Banker International, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
