Hellman & Friedman buys Allfunds for €1.8bn

Amedeo Goria
07 March 2017

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US private equity house Hellman & Friedman has fully acquired Spanish lender Allfunds Bank alongside Singapore’s sovereign fund GIC for €1.8bn.

The deal values the business at €1.8bn and sees Santander Asset Management sell its 25% stake in the business, while private equity firms Warburg Pincus and General Atlantic have sold their combined 25% stake and Eurizon Capital, the private equity arm of Italian lender Intesa Sanpaolo, sold its 50% stake.

According to a statement, Santander reaped €470m from the sale, including €300m of net proceeds. Intesa Sanpaolo will receive €900m in cash from the buyers, including €800m of net proceeds.

Following the deal, both Santander and Intesa Sanpaolo will continue as clients of Allfunds, while the new owners will look to boost the company's expansion through bolt-on acquisitions.

According to press reports, Hellman & Friedman outbid several private equity funds including Bain Capital, Advent, Cinven, Permira and BC Partners.

The transaction follows Santander's acquisition of the remaining 50% stake in Santander Asset Management from Warburg Pincus and General Atlantic in November 2016.

Previous funding
Eurizon Capital acquired a 50% stake in Allfunds in 2003.

Company
Based in Madrid and established in 2000 with Santander as sole shareholder, Allfunds Bank manages €265bn in assets on behalf of 533 institutional clients, including commercial banks, private banks and insurance companies. The business has a presence in 38 countries across Europe, Asia and Latin America.

According to a statement, Allfunds posted €742.7m in revenue from fees and commissions in 2015 and €107.6m in EBITDA.

People
Hellman & Friedman – Blake Kleinman, Zita Saurel (managing directors).
Allfunds Bank – Juan Alcaraz (general manager).

Advisers
Equity (Hellman & Friedman) – Barclays (M&A); Citibank (M&A); Freshfields (legal); Ropes & Gray (legal).
Acquirer (GIC) – Barclays (M&A); Citibank (M&A); Simpson Thacher & Bartlett (legal).
Vendor (Intesa Sanpaolo) – Bank of America Merrill Lynch (M&A); Morgan Stanley (M&A); Linklaters (legal).