American Hellman & Friedman and Singapore’s GIC to acquire Allfunds Bank
Affiliates of Hellman & Friedman, a leading private equity investor, together with GIC, Singapore’s sovereign wealth fund, announced the signing of an agreement to acquire Allfunds Bank (Allfunds), a leading global financial technology business, from Intesa Sanpaolo Group, Santander Group, General Atlantic and Warburg Pincus. The deal values Allfunds at €1.8bn and is subject to the customary closing conditions.
Allfunds offers integrated technology based solutions to asset managers and distributors of mutual funds. The company is the leading B2B platform providing a range of operational, analytic and information services supporting the mutual fund distribution activities of over 530 institutional clients, including commercial banks, private banks and insurance companies from 38 different countries. Further, Allfunds has a global network of offices across Europe, Asia and Latin America and over €265bn assets under administration globally covering 51,000 funds from 541 fund managers.
The fund distribution market benefits from attractive growth characteristics. Strong wealth creation both in Europe and in Asia will drive greater demand for investment management products, while continued regulatory emphasis on transparency necessitates a shift to open architecture platforms providing access to third-party investment products. Supported by its new shareholders, Allfunds’ strong management team will capitalise on this long-term opportunity by continuing to expand the business across Europe, Asia and Latin America.
Juan Alcaraz, CEO of Allfunds, said: “Hellman & Friedman’s strong track record in building premier global financial services franchises and GIC’s leading presence in Asia make them the perfect partners to support our future growth. Together with our new shareholders, we will invest in growing the business across the world, while continuing to support our clients in delivering the broadest available range of products to their customers.”
Blake Kleinman, Managing Director at Hellman & Friedman, said: “Allfunds is a clear leader in its sector, with a best-in-class service that leverages its technology proposition and strong operational track record. We look forward to bringing our financial technology expertise to bear as we support Allfunds in continuing to deliver and innovate for its clients.”
Zita Saurel, Managing Director at Hellman & Friedman, said: “We are delighted to be partnering with Allfunds’ exceptional management team, led by Juan Alcaraz, which has delivered strong growth over recent years. Our role as an investor, together with our partner GIC, will be to support the team in accelerating growth, both organically and through select M&A.”
Henry Ormond, head of direct investments group in Europe at GIC Private Equity, said, “As a long-term value investor, GIC is confident in Allfunds’ scalable business model based on its leading European market platform, diversified customer base and long-term contracts. We believe the company, supported by our partnership with Hellman & Friedman, will grow to be the global market leader in the fund management industry.”
Barclays and Citibank acted as financial advisors to Hellman & Friedman and GIC on the transaction. Freshfields and Ropes and Gray acted as legal counsel to Hellman & Friedman and Simpson Thacher & Bartlett acted as legal counsel to GIC.