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Allfunds Inks Major Partnership With BNP Paribas

Tom Burroughes

22 October 2019

, the European fund distribution platform which recently pushed into the Asia market, has formed a strategic partnership with BNP Paribas. 

The duo have announced they have “entered into an agreement to create one of the world’s leading fund and wealthtech platforms”. The move comes shortly after Credit Suisse agreed to combine its open-architecture investment platform business with Allfunds.

Explaining its future ownership structure, Allfunds said it will remain “fully independent with majority ownership held by Hellman & Friedman and GIC”. This transaction will see BNP Paribas Securities Services and BNP Paribas Asset Management receive a strategic stake of 22.5 per cent in Allfunds - subject to regulatory approvals and any required consultations. It is expected to close before the end of 2020.

Such a deal shows how banks are working with certain providers to win scale and market reach in ways that might be more costly to implement in-house.

As part of the agreement, BNP Paribas Securities Services intends to use Allfunds as its preferred access to the fund market, exploring opportunities together to enhance services to fund providers and financial institutions. BNP Paribas Securities Services will also transfer its Banca Corrispondente local paying agency activities in Italy as well as some Italian transfer agency services to Allfunds, where they will complement its existing range of local fund distribution services.

BNP Paribas will entrust Allfunds with the management of distribution contracts of third-party investment funds for several BNP Paribas Group entities in its retail, wealth management, insurance and asset management businesses. This will expand Allfunds’ business proposition to new territories including France and Germany thanks to BNP Paribas’ market positioning.

Following the transaction, Allfunds will open new offices in Paris and Warsaw.