GIC, Hellman & Friedman to buy Allfunds for €1.8bn

The investment will be used to grow Allfunds’ business in Asia, Europe and Latin America.

Singapore sovereign wealth fund GIC and US private equity firm Hellman & Friedman have teamed up to acquire fintech company Allfunds from shareholders Intesa Sanpaolo Group, Santander Group, Warburg Pincus and General Atlantic, in a deal valuing the company at €1.8 billion, according to a statement.

Madrid-based Allfunds is a technology-based solutions provider to the fund management industry. The company has over 530 institutional clients, including commercial banks, private banks and insurance companies from 38 countries. The company manages over €265 billion of assets covering 51,000 funds across Europe, Asia and Latin America.

Santander owns 25 percent of Allfunds, Warburg and General Atlantic own a combined 25 percent, while Intesa Sanpaolo holds the remaining 50 percent stake.

Following the sale of Allfunds, Warburg and General Atlantic would have a return on invested capital on over 60 percent, a source with knowledge of the matter told Private Equity International.

Commenting on the transaction, Henry Ormond, head of direct investments group for 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.”

“We are delighted with the strong growth in Allfunds since our investment in 2014. The company has capitalised well on the trend towards open architecture, becoming by far the largest fund distribution platform in Europe,” Warburg Pincus managing director Daniel Zilberman said.

Meanwhile Juan Alcaraz, CEO of Allfunds added that the company will capitalise on GIC and Hellman & Friedman’s networks to expand the business across Europe, Asia and Latin America.

San Francisco-headquartered Hellman & Friedman is in the process of investing its $10.9 billion 2014-vintage Hellman & Friedman Capital Partners VIII, according to PEI data.

Barclays and Citibank acted as financial advisors to Hellman & Friedman and GIC on the transaction.