Allfunds and BNP Paribas have entered into an agreement to create a fund and wealthtech platform. This agreement will enable Allfunds and BNP Paribas to build on each other’s expertise to develop next-generation fund distribution services.

BNP Paribas Securities Services intends to use Allfunds as preferred access to the fund market, exploring opportunities 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.

In addition, 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.

BNP Paribas and its clients will benefit from the partnership with one of the largest wealthtech platforms in Europe and Allfunds’ partners will expand their business reach.

As a result of this transaction, Allfunds will open new offices in Paris and Warsaw.

Allfunds will continue to operate independently, with majority ownership held by Hellman & Friedman and GIC. This transaction, which will see BNP Paribas Securities Services and BNP Paribas Asset Management together receive a strategic stake of 22.5% in Allfunds, is subject to regulatory approvals and any required consultations. It is expected to close before the end of 2020.

This strategic deal adds to Allfunds’ recent Credit Suisse InvestLab transaction and falls under Allfunds’ strategy to become one of the most prominent fund platforms across this industry, boosted by its technological edge and global ambition.

Juan Alcaraz, CEO of Allfunds, states, “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.”

Patrick Colle, CEO at BNP Paribas Securities Services, comments, “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.”