BNP Paribas makes a deal to combat rising tech and regulatory costs.

AllFunds has announced a partnership with BNP Paribas.

According to terms, BNP is taking a 2.5% stake in the world’s largest fund distribution network.

The deal will help BNP reduce expenses in the face of rising regulatory and technology costs are climbing. In addition, investors are also demanding lower fees. Under the deal, BNP Paribas will entrust Allfunds with managing the distribution of third-party investment fund contracts. Further, AllFunds will manage this for several of BNP Paribas Group’s entities.

“The demand for fund distribution platforms is growing and we want our clients to be able to take advantage of the opportunities they present,” said Patrick Colle, CEO at BNP Paribas Securities Services. “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.”

AllFunds Plans for the Future

As a result of this transaction, Allfunds will open new offices in Paris and Warsaw. Meanwhile, the firm will continue to operate independently. Hellman & Friedman and GIC will maintain majority ownership.

“We are proud to enter into an agreement with BNP Paribas, a leading bank in the Eurozone and a prominent international player,” said Juan Alcaraz, CEO of Allfunds. “This deal represents a major step in our ambition to be at the forefront of “wealth tech.” By relying on our platform and BNP Paribas’ integrated business model, we will be able to empower clients with optimized fund distribution services and innovative digital solutions.”

Finally, this strategic deal adds to Allfunds’ recent Credit Suisse Invest Lab transaction. The deal will likely close by the end of 2020.

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