Allfunds Group Ends Talks on Potential Sale of European Fund Distribution Platform

Allfunds Group, a leading European fund distribution platform, has abandoned discussions about a potential sale, citing strong financial performance and growth prospects in the European fund distribution market.

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Geeta Pillai
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Allfunds Group Ends Talks on Potential Sale of European Fund Distribution Platform

Allfunds Group Ends Talks on Potential Sale of European Fund Distribution Platform

Allfunds Group Plc, a leading European fund distribution platform, has ceased discussions over a potential sale of the company. Despite receiving multiple expressions of interest, the board of Allfunds decided not to proceed with a sale after determining that the offers received did not fully reflect the company's growth prospects.

In a recent trading update, Allfunds reported that its net revenue for the first quarter of 2024 had increased by 18% year-on-year to €153 million ($164 million). The company also saw a 4% increase in assets under administration since December 2023, reaching approximately €1.4 trillion.

Allfunds, which is roughly 49% owned by private equity firm Hellman & Friedman and French lender BNP Paribas SA, provides fund managers and distributors with systems for dealing and execution, data analytics, and compliance services. Its software allows clients to screen and trade different investment funds through a centralized platform.

The decision to call off the potential sale has the support of Hellman & Friedman. By opting to remain independent, Allfunds aims to capitalize on its strong financial performance and promising growth trajectory in the European fund distribution market.

Why this matters: The abandoned sale of Allfunds Group highlights the resilience and growth potential of the European fund distribution sector. As a key player in this market, Allfunds' decision to remain independent signals confidence in its ability to continue expanding and delivering value to its clients.

Allfunds Group's strong first-quarter results, with double-digit revenue growth and increased assets under administration, underscore the company's solid market position. "Allfunds announced in a trading update that its net revenue for the first quarter had increased 18% year-on-year to €153 million ($164 million)," confirming its positive financial trajectory in 2024.

Key Takeaways

  • Allfunds Group abandoned potential sale after offers didn't reflect growth prospects.
  • Allfunds reported 18% YoY increase in Q1 2024 net revenue to €153M.
  • Assets under administration grew 4% since Dec 2023, reaching €1.4T.
  • Allfunds is 49% owned by Hellman & Friedman and BNP Paribas.
  • Allfunds aims to capitalize on strong performance and growth in European fund distribution.