BNP Paribas is acquiring a slice of wealth management technology provider Allfunds, in a deal which the bank believes will create market-leading wealthtech software.
BNP Paribas will be grabbing a 22.5% stake in Allfunds. The French bank intends to use Allfunds as preferred access to the fund market, exploring together “opportunities to enhance services to fund providers and financial institutions”.
The transaction, which will see BNP Paribas Securities Services and BNP Paribas Asset Management receive together a strategic stake of 22.5% in Allfunds, is expected to close before the end of 2020.
BNP Paribas Securities Services will also move its Banca Corrispondente local paying agency activities in Italy, as well as some of its Italian transfer agency services to Allfunds.
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Allfunds will also be tasked with the management of distribution contracts for third-party investment funds of several BNP Paribas Group entities in its retail, wealth management, and insurance and asset management businesses.
“The demand for fund distribution platforms is growing and we want our clients to be able to take advantage of the opportunities they present,” says Patrick Colle, CEO at BNP Paribas Securities Services.
“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.”
For Juan Alcaraz, CEO of Allfunds, the deal represents “a major step in our ambition to be at the forefront of wealthtech.”