KBC Group: KBC Securities and Van Lanschot Kempen Investment Banking announce joint venture in equities

Core Viewpoint - KBC Securities and Van Lanschot Kempen Investment Banking are forming a 50/50 joint venture to create a leading equities broker in the Benelux region, focusing on real estate and life sciences sectors, enhancing research coverage and liquidity for clients [1][2][3]. Joint Venture Highlights - The joint venture will consolidate equities businesses, including equity research, sales, trading, and Equity Capital Markets (ECM) execution, serving as the exclusive distribution channel for ECM business for both firms [2]. - Both companies will maintain independent client coverage for ECM transactions and continue to offer corporate finance services, including M&A advice [2]. Client Benefits - Investors will gain access to approximately 230 stocks under research coverage, with a strong emphasis on the Benelux region and European real estate and life sciences companies [3]. - The combination of investor bases from both firms is expected to significantly enhance liquidity and investor coverage, providing a broader client offering [4]. Future Growth Potential - The joint venture aims to establish a scalable platform with opportunities for future expansion [5]. - The partnership is designed to enhance client value by offering a comprehensive range of investment banking services, creating a Benelux powerhouse for corporate and institutional clients [6][8]. Operational Details - The joint venture is expected to commence operations in Q4 2026, pending regulatory approval, and will operate under its own license with equal ownership [7]. - The transaction is anticipated to positively impact Van Lanschot Kempen's capital ratio by approximately 0.25 percentage points, while having no material effect on KBC Group's CET1 ratio [9]. Company Backgrounds - KBC Securities is Belgium's leading investment bank, providing a wide range of financial services, including corporate finance and equity capital markets, with a strong focus on sectors like technology and life sciences [11]. - Van Lanschot Kempen is an independent wealth manager with a long history, focusing on sustainable wealth creation through private banking, investment management, and investment banking [13].