Hellman & Friedman Is Said to Add Banks for Allfunds IPO

Private equity firm Hellman & Friedman has picked more banks to work on a potential initial public offering of fund-distribution business Allfunds, according to a person familiar with the matter.

Hellman & Friedman appointed Bank of America Corp., Banco Santander SA, Barclays Plc, CaixaBank SA, HSBC Holdings Plc and Intesa Sanpaolo SpA as joint bookrunners for the listing, the person said, asking not to be identified because the information is private. It could seek a valuation of at least 7 billion euros ($8.4 billion) for the business, according to the person.

The listing of Allfunds is set to be one of the biggest IPOs in the European financial industry this year. The private equity firm had already selected Credit Suisse Group AG, BNP Paribas SA, Citigroup Inc. and Morgan Stanley to work on the deal, Bloomberg News reported in December. It’s now leaning toward a share sale after also gauging interest in the business from potential buyers, the person said.

Hellman & Friedman has owned Allfunds since 2017. It’s since grown the business through a series of acquisitions, including a purchase of Credit Suisse’s InvestLab platform. Allfunds works with about 2,300 institutions and has more than 1.2 trillion euros of assets under administration, according to its website.

Wealth Tech

Private equity firms have been drawn to financial technology and wealth technology firms, a space that’s also attracted stock exchanges eager to find new growth avenues that aren’t correlated with trading volumes. Allfunds sits between fund houses and banks, helping asset managers distribute their products while allowing lenders to increase the breadth of offerings to their customers.

Platforms such as Allfunds distributing a vast pool of products are able to benefit from economies of scale, allowing them to be more cost-efficient. Allfunds increased its revenue at a 20% compound annual growth rate between 2012 and 2019, according to corporate filings.

Hellman & Friedman plans to keep a stake in Allfunds after the IPO, the person said. It hasn’t decided on a venue for the listing, and other details of the proposed share sale could change, the person said.

Representatives for Hellman & Friedman, Bank of America, HSBC and Intesa declined to comment. Spokespeople for Barclays, Caixa and Santander didn’t immediately respond to requests for comment.

©2021 Bloomberg L.P.

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