Allfunds Bank could continue its international expansion and roll out a white-labelled platform with institutional pricing for advisers following its acquisition by Hellman & Friedman and GIC, Platforum says.
Today Santander announced it is selling its 25 per cent stake in Allfunds Bank for €470m as part of the biggest global platform deal on record, with private equity firm Hellman & Friedman and Singapore’s sovereign wealth fund GIC buying Allfunds Bank for €1.8bn.
Allfunds Bank currently has €250bn in assets under administration, making it the largest European platform, with a market share of 12.6 per cent of the European B2B platform market, according to Platforum data.
Rodolfo Crespo, senior analyst at Platforum, says Allfunds Bank is consistently praised by fund groups for its distribution potential, value for money and management information and has benefited from the demand from third-party funds for open architecture solutions.
He says: “It will be interesting to see how the new owners support the next phase of Allfunds Bank’s growth strategy in an environment of platform consolidation and potentially disruptive regulation. Last year the platform said it was looking to grow further in Europe through acquisitions so it could be a case of gaining more scale and carrying on with its international expansion.
He adds: “However, we expect to see consolidation of adviser firms across Europe, particularly in the UK, France and Germany, so there could be an opportunity for Allfunds Bank to offer a white-labelled platform at institutional pricing levels to adviser firms with significant size. We also expect to see the platform accelerate its plan to support ETFs and other listed securities.”