The aim is to create “one of the world’s leading fund and wealthtech platforms”, Allfunds said.
The deal will see BNP Paribas hand over the distribution management operations of third-party investment funds for its retail, insurance, wealth and asset management entities.
BNP Paribas Securities Services will use Allfunds as its main access to the fund market, and will transfer its Italian local paying agency, Banca Corrispondente, and its transfer agency services to the wealthtech firm.
Additionally, Allfunds will open offices in Paris and Warsaw, as it looks to expand its proposition to more European countries; including France and Germany
The partnership will see the French bank receive a 22.5% stake in Alfunds, which is subject to regulatory approval and expected to close by the end of 2020.
Meeting growing demand
Allfunds will continue to operate independently, however, as the majority ownership will still be held by private equity firm Hellman & Friedman and capital market company GIC.
Juan Alcaraz, chief executive of Allfunds, 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.”
Patrick Colle, chief executive at BNP Paribas Securities Services, added: “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.”
This move follows Allfunds’ partnership with Credit Suisse in June 2019, aimed at the development of services and solutions for intermediaries in the fund market.