OSLO, NORWAY: Sparebanken Sør is one of the banks in the Frendegruppen, a collaboration between independent banks and owners and distributors of Frende Insurance, Brage Finans, and Norne Securities. Now they are joining forces to buy 70 percent of the asset management company Borea Asset Management.

The goal is to build an asset management capability, headquartered in the banks’ market areas.

“Borea will create high-performing fund products for Frende banks’ customers, contribute to building a strong financial environment close to the banks, and create new revenues and returns for the banks,” this is stated by Heidi Nag Flikka, leader of the Frendegruppen’s interim board.

Borea Asset Management currently manages just over ten billion NOK, heavily weighted towards special funds. With Frende banks on the owner side, which has customers with over 40 billion in Asset Under Management, the company will now also strengthen the focus on fund products for the banks’ retail and corporate customers through a distribution model.

This gives savings bank customers access to a high-performing fund environment that until now has only been reserved for professional investors.

Geir Bergskaug, CEO of Sparebanken Sør., said, “For a long time, we have been looking for a good partner for a strong asset management initiative. Borea has impressed us with high-performing fund products in combination with efficient operations. We believe Borea’s competence and culture provide a good starting point for further scaling.

Heidi Nag Flikka said, “From January 1, 2025, we hope that our customers will find new and high performing fund products in their trading solutions.

Hilde Nødseth, CEO of Borea, said, “With the new owners’ large distribution power and our robust management model, I am convinced that this will result in large synergy effects that will benefit customers. We are ready to welcome the banks’ customers and will use the next few months to attract even more of the sharpest minds in asset management.

“For the Frendegruppen’s share of the company, we will establish a structure that regularly rebalances ownership after the value the banks bring to the company. This idea is core to Frendegruppen, namely that the values should return to the banks, rather than financing group activities, says CEO of Frendegruppen, Hans Olav Ingdal.

The acquisition is planned to be completed during the third quarter of 2024, subject to approval from regulatory authorities. The period until January 2025, Borea and the new distributors will use to make the necessary adjustments to be able to offer Borea funds to bank customers.