French banking group BNP Paribas has signed an agreement to acquire a minority stake in wealth management platform Allfunds to strengthen fund distribution services.
The announcement comes a month after Allfunds snapped up Credit Suisse’s InvestLab business-to-business investment fund platform.
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By GlobalDataUnder the agreement, BNP Paribas Securities Services and BNP Paribas Asset Management will purchase a 22.5% stake in Allfunds.
Financial terms of the deal were not divulged.
BNP Paribas Securities Services plans to utilise Allfunds technology to bolster reach in the fund market.
It will also move some Italian transfer agency services and Banca Corrispondente local paying agency operations to Allfunds.
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.”
Additionally, Allfunds will be responsible for managing distribution contracts of third-party investment funds for some BNP Paribas Group entities.
On the other hand, the deal will enable Allfunds to leverage BNP Paribas’ expertise in asset servicing and asset management.
Allfunds CEO Juan Alcaraz said: “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.”
Deal completion is anticipated before the end of next year, subject to regulatory approval.