BNP Paribas is buying a 22.5 percent stake in Allfunds. Financial terms weren’t announced. Hellman & Friedman and GIC will continue to own a majority. Allfunds is a wealthtech and fund distribution company offering services including data & analytics, portfolio & reporting tools, research, and regulatory services.
Allfunds and BNP Paribas announce strategic partnership
• Transaction will contribute to Allfunds’ continuing growth and expanding global footprint
• Allfunds to remain fully independent with majority ownership held by Hellman & Friedman and GIC
Allfunds and BNP Paribas today announce that they have entered into an agreement to create one of the world’s leading fund and wealthtech platforms.
This agreement will enable Allfunds, a world class independent leader in wealth technology, and BNP Paribas, one of the largest financial institutions in the world, to build on each other’s expertise to develop next-generation fund distribution services.
BNP Paribas Securities Services, a leading global custodian and fund services provider, intends to use Allfunds as preferred access to the fund market, exploring together opportunities to enhance services to fund providers and financial institutions. BNP Paribas Securities Services will also transfer its Banca Corrispondente local paying agency activities in Italy as well as some Italian transfer agency services, to Allfunds, where they will complement its existing range of local fund distribution services.
In addition, BNP Paribas will entrust Allfunds with the management of distribution contracts of third-party investment funds for several BNP Paribas Group entities in its retail, wealth management, insurance and asset management businesses. This will expand Allfunds’ business proposition to new territories including France and Germany thanks to BNP Paribas’ market positioning.
BNP Paribas and its clients will benefit from the partnership with one of the leading wealthtech platforms in Europe and Allfunds’ partners will expand their business reach.
As a result of this transaction, Allfunds will open new offices in Paris and Warsaw.
Allfunds will continue to operate independently, with majority ownership held by Hellman & Friedman and GIC. This transaction, which will see BNP Paribas Securities Services and BNP Paribas Asset Management receive together a strategic stake of 22.5% in Allfunds, is subject to regulatory approvals and any required consultations. It is expected to close before the end of 2020.
This strategic deal adds to Allfunds’ recent Credit Suisse InvestLab transaction and falls under Allfunds’ strategy to become one of the most prominent fund platforms across this industry, boosted by its technological edge and global ambition.
Juan Alcaraz, CEO of Allfunds, stated: “We are proud to enter into an agreement with BNP Paribas, a leading bank in the Eurozone and a prominent international player. This deal represents a major step in our ambition to be at the forefront of wealthtech. By relying on our platform and BNP Paribas’ integrated business model, we will be able to empower clients with optimised fund distribution services and innovative digital solutions.”
Patrick Colle, CEO at BNP Paribas Securities Services, commented: “The demand for fund distribution platforms is growing and we want our clients to be able to take advantage of the opportunities they present. This partnership will enable us to significantly enhance our offering, giving our clients access to a successful and fast-growing fund distribution platform. It will also enable us to accelerate the development of next-generation fund distribution services and data analytics.”
Allfunds is one of the world’s leading wealthtech and fund distribution companies with a service offering which includes data & analytics, portfolio & reporting tools, research, and regulatory services. Additionally, Allfunds offers its solution “Allfunds Connect”, a digital ecosystem to bring together fund houses and distributors. Created in 2000, today Allfunds has more than €500 billion assets under administration and offers more than 84,860 funds from over 1,550 fund houses. Allfunds has a local presence in Luxembourg, Switzerland, United Kingdom, Spain, Italy, United Arab Emirates, Singapore, Chile, Colombia and Brazil and has agreements with over 660 distributors, including major commercial banks, private banks, insurance companies, fund managers, international brokers, and specialist firms from 50 different countries.