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March 8, 2017

GIC, Hellman & Friedman to buy Allfunds Bank

Singapore's sovereign wealth fund GIC and affiliates of private equity investor Hellman & Friedman have agreed to acquire mutual fund platform Allfunds Bank from Santander, Intesa Sanpaolo, Warburg Pincus and General Atlantic.

By Verdict Staff

Singapore's sovereign wealth fund GIC and affiliates of private equity investor Hellman & Friedman have agreed to acquire mutual fund platform Allfunds Bank from Santander, Intesa Sanpaolo, Warburg Pincus and General Atlantic.

Allfunds offers technology based solutions to asset managers and mutual fund distributors. The firm has offices across Europe, Asia and Latin America and manages over €265bn in assets covering 51,000 funds from 541 fund managers.

Intesa agreed to offload its 50% stake in Allfunds for nearly €900m in cash, and said that the deal would generate a net capital gain of around €800m for the bank.

Santander agreed to sell its 25% in the platform for about €470m, and said that the sale would help it secure a net capital gain of about €300m.

Warburg Pincus and General Atlantic, which together own a 25% stake in Allfunds, did not disclose the terms of the sale on their side.

GIC Private Equity head of direct investments group in Europe Henry Ormond said: "As a long-term value investor, GIC is confident in Allfunds' scalable business model based on its leading European market platform, diversified customer base and long-term contracts. We believe the company, supported by our partnership with Hellman & Friedman, will grow to be the global market leader in the fund management industry."

Allfunds CEO Juan Alcaraz said: "Hellman & Friedman's strong track record in building premier global financial services franchises and GIC's leading presence in Asia make them the perfect partners to support our future growth. Together with our new shareholders, we will invest in growing the business across the world, while continuing to support our clients in delivering the broadest available range of products to their customers."

The transaction, which is subject to regulatory approvals, values Allfunds at €1.8bn.

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