Allfunds Group Plc has started gauging takeover interest from private equity firms as the European fund distribution platform considers a possible sale, people with knowledge of the matter said.
The Amsterdam-listed company is in the early stages of approaching buyout firms including Cinven, CVC Capital Partners and Permira, according to the people. KKR & Co. and Warburg Pincus are also among potential suitors that could study the business, the people said.
Shares of Allfunds jumped 6.3% to €6.04 at 4 p.m. in Amsterdam. The stock has fallen 7.5% this year, giving the company a market value of about €3.8bn.
Allfunds is working with advisers at Goldman Sachs Group Inc. and Citigroup Inc. on a strategic review that could lead to a sale, the people said. The company could also attract interest from a select number of industry players, some of the people said.
A successful suitor would need to win support from private equity firm Hellman & Friedman and French lender BNP Paribas SA, which own a combined 46% stake in Allfunds, according to data compiled by Bloomberg. Deliberations are at an early stage, and there’s no certainty they will lead to a transaction.
Representatives for Allfunds, Cinven, Citigroup, CVC, Goldman Sachs, Permira, Warburg and KKR declined to comment.
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The business attracted takeover interest from German stock-exchange operator Deutsche Boerse AG, Bloomberg News reported in 2020. Allfunds went public in 2021 at €11.50 a share and this year, Euronext NV made an indicative offer of €5.5bn, or €8.75 a share, in February before eventually dropping its pursuit.
Allfunds provides fund managers and distributors with systems for dealing and execution, data analytics and compliance services. It works with more than 3,000 fund groups with around €1.3 trillion of assets under administration.
The company’s software allows clients to screen and trade different investment funds through a centralized platform, as well as providing fund houses with reporting tools to track assets and fund flows.
Source: BNN Bloomberg
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