International Finance
Wealth Management

BNP Paribas and Allfunds to create wealthtech platform

BNP Paribas Allfunds
BNP Paribas will receive a 22.5% stake in the wealth management company

France’s BNP Paribas and wealth management company Allfunds have entered into a partnership to create a strategic fund and also develop a wealthtech platform.

According to the partnership deal, BNP Paribas’ wealth management wing and BNP Paribas Securities Services will receive a 22.5 percent stake in Allfunds. However, the deal which is subject to regulatory approval, is expected to close by the end of 2020.

The deal will see BNP Paribas Securities Services transfer its local paying agency in Italy to Allfunds. It will also give Allfunds access to the French and German market. The company will soon open new offices in Paris and Warsaw.

According to the companies, the partnership will facilitate the development of a next-generation fund distribution platform. The deal will see BNP Paribas Securities Services use Allfunds for preferred access to the fund market and improve its services to fund providers and financial institutions.

With regard to the partnership with BNP Paribas, Juan Alcaraz, CEO of Allfunds, told the media, “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.”

According to Patrick Colle, CEO at BNP Paribas Securities Services, the demand for fund distribution platform is growing at a very fast rate. He believes the partnership with Allfunds will help BNP Paribas give its clients access to a successful and fast-growing fund distribution platform.

Despite BNP Paribas acquiring a 22.5 percent stake in the company, Allfunds will remain a fully independent company with a majority of its shares owned by Hellman and Friedman and GIC.

Allfunds, which was founded in 2000, oversees wealth worth $500 billion in Europe. The company was bought by Hellman and Friedman and GIC in 2017.

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