BNP Paribas’ Securities Services and Asset Management subsidiaries will acquire the stake in Allfunds and create a wealthtech platform
French banking group BNP Paribas has agreed to acquire a 22.5% stake in wealth management firm Allfunds for an undisclosed amount.
The transaction will involve BNP Paribas Securities Services and BNP Paribas Asset Management, the asset management subsidiary of the bank, jointly acquiring the stake in Allfunds, subject to regulatory approvals. The deal is expected to close before the end of next year.
As part of the deal, BNP Paribas and Allfunds have also announced that they will create a fund and wealthtech platform. The two companies intend to use each other’s expertise to develop next-generation fund distribution services.
BNP Paribas Securities Services, the fund services subsidiary of the bank, aims to utilise Allfunds as preferred access to the fund market and together explore opportunities to enhance services to fund providers and financial institutions.
The subsidiary will also transfer its Banca Corrispondente local paying agency activities in Italy, along with some Italian transfer agency services, to Allfunds. Banca Corrispondente and Allfunds services are expected to complement their range of local fund distribution services.
BNP Paribas Securities Services CEO Patrick Colle said: “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.”
Furthermore, the French bank will entrust Allfunds with the management of distribution contracts of third-party investment funds for several of its group entities across retail, wealth management, insurance and asset management businesses.
The partnership with Allfunds, a wealthtech platform in Europe, could be beneficial for BNP Paribas and its clients.
The deal will result in Allfunds opening offices in Paris and Warsaw
Allfunds’ partners are expected to expand their business reach and will benefit from BNP Paribas’ experience in asset servicing and asset management.
Allfunds CEO Juan Alcaraz said: “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.”
Last month, the French bank and Deutsche Bank signed a master transaction agreement to continue services to Deutsche Bank’s Global Prime Finance and Electronic Equities clients. Under the terms of the agreement, Deutsche Bank will continue to operate the platform until clients can be migrated to BNP Paribas.
The two companies said that they will work together for a seamless transition of clients through the migration of technology and key staff from Deutsche Bank to BNP Paribas.