Allfunds’ bulimia disrupts fund distribution in Europe

Posted on Jan 19, 2021 8:43 AM

Its IPO was one of the most anticipated in Europe this year. Allfunds, Spanish nugget of the American Hellman & Friedman, could finally fall into the hands of another player in private equity. The main European player in the distribution of funds – specifically, it is responsible for the management of distribution contracts and commissions between management companies and their final distributors – is subject to a “dual track” following the interest shown by potential buyers, indicates to “Echos” a source familiar with the matter, which confirms the information revealed Thursday, January 14 by the Spanish economic newspaper “Cinco Días”. This double sales process could raise the imminent stakes in a range of 4 to 7 billion euros. The listing project (IPO) initially valued the Madrid group between 3 and 4 billion.

The prices mentioned, stratospheric with regard to the 68 million net profit of the company in 2019, are supposed to reflect its trajectory of accelerated growth. In 2017, Hellman & Friedman and the Singaporean sovereign wealth fund GIC had already struck a chord with the purchase of the Santander and Intesa Sanpaolo distribution platform for 1.8 billion euros. “It turned all heads, increasing price multiples and creating some turmoil”says Bernard Tancré, head of investment fund services at Clearstream.

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