BNP Paribas Investment Partners (BNPP IP) is reportedly restructuring its emerging markets business model with a greater focus on local investments in various markets.
Ligia Torres, head of APAC and emerging markets for BNPP IP, said the new business model will be based upon three components including local-to-local, local-to-global, and global-to-local, according to The Asset.
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As part of the restructure, BNPP IP is planning to open an office in Mexico in an effort to expand its presence into Latin America.
The new model will focus more on the firm’s securities services, investment bank, and wealth management units.
Under the new business model, BNPP IP intends to grow its emerging markets business, which current accounts for about 12% of global AUM, to a level of about 30% of global AUM over the next five years.
The firm also aims to raise the revenue of its emerging markets business, which now accounts for about 35% of global revenues, to almost double over five years.
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By GlobalDataBNPP IP currently has offices in 16 emerging market countries with a total of 458 investment staff, 108 market and 227 sales representatives, while in the APAC and emerging markets, it has offices in 19 countries with 1,000 full-time employees including 280 investment professionals.
"With our new business model, we leverage our capabilities and resources wherever it makes sense. There is a lot of cross selling and where everything that can be put together either in platform or tools, we are putting that together. We are trying to optimize by keeping our specializations because that is the strength that we have for our clients," Torres said.
Vincent Camerlynck, CEO for APAC of BNPP IP, said: "The difference in our business model is that we can rely on our strong local presence in the domestic markets. This is less susceptible to external shocks."
