BNP Paribas has taken a strategic stake in Allfunds, a global custodian and fund services provider. The lender also agreed to work with Allfunds to create a leading fund and wealthtech platform.
BNP Paribas Securities Services and BNP Paribas Asset Management would take a strategic stake of 22.5 percent in Allfunds, the companies announced on Monday. The transaction is expected to close before the end of 2020, subject to regulatory approvals.
«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,» said Juan Alcaraz, CEO of Allfunds in a media statement.
Post-transaction, Allfunds will continue to operate independently, with majority ownership held by Hellman & Friedman and GIC. This strategic deal lines up with Allfunds’ recent Credit Suisse InvestLab transaction, as part of the firm's strategy to become a prominent fund platform in the industry.
Developing the Next-Generation Distribution Service
In line with the investment, BNP Paribas and Allfunds have agreed to partner up and leverage on each other’s expertise to develop the next-generation fund distribution services. BNP Paribas Securities Services intends to use Allfunds as preferred access to the fund market, exploring opportunities to enhance services to fund providers and financial institutions.
«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 accelerate the development of next-generation fund distribution services and data analytics,» said Patrick Colle, CEO at BNP Paribas Securities Services.
Transfer Of Activities
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 based on BNP Paribas’ market positioning. In line with this deal, Allfunds will open new offices in Paris and Warsaw.
