BNP Paribas has partnered with Allfunds to create a wealthtech platform under a deal that will see it take a significant stake of the fund distribution firm.
Following the agreement, the custodian and asset management arms of BNP Paribas will co-own a strategic stake of 22.5% in Allfunds.
Majority ownership will remain unchanged. Private equity investor Hellman & Friedman and Singapore sovereign wealth fund GIC will continue to operate the financial technology company independently.
BNP Securities Services (BNPP SS) said it will aim to use the distribution network as its preferred point of access to the funds market.
Patrick Colle, chief executive of BNPP SS, said: “This partnership will enable us to significantly enhance our offering, giving our clients access to a successful and fast-growing fund distribution platform.”
He added the deal would also accelerate the development of next-generation fund distribution services and data analytics.
The agreement also means that BNPP SS will transfer various agency services in Italy - specifically its Banca Corrispondente local paying agency activities - to the wealthtech firm.
According to Allfunds chief executive Juan Alcaraz, the deal represents a “major step” in the company’s growth plan to be at the forefront of the wealthtech industry.
As a result of the transaction, Allfunds will open new offices in Paris and Warsaw.
Earlier this year, the Spanish-based company was selected by Swedish insurance group Folksam as its fund distribution platform.
In June, Allfunds partnered with Credit Suisse to create a wealthtech platform with over €500 billion in assets under management.
©2019 funds europe