BNP Paribas Asset Management is acquiring FundQuest Inc., one of the leading turnkey asset managers in the United States with USD 10 billion AUM.
FundQuest, founded in 1993 in Boston, Massachusetts, provides a wide range of wealth management solutions to more than 60 financial institutions, mainly banks and insurance broker-dealers.
It has built a unique and highly customizable investment platform providing the entire range of financial services: asset allocation, analysis and selection of the top performing institutional investment "boutiques", portfolio management and reporting analytics.
This acquisition is a strategic opportunity for BNP Paribas and FundQuest to become an integrated global market leader that uses open architecture to deliver wealth management solutions for institutions and advisors:
- In the United States, BNP Paribas will make a major move in managed accounts, a segment of the US investment industry with strong growth potential, capitalizing on BNP Paribas' strong position in banking services in the US.
- In Europe, FundQuest will join forces with Cortal Consors Fund Management, a fully owned subsidiary of BNP Paribas and a European leader in open architecture and investment advisory services with USD 18 billion under management and advisory. CFM's existing multi-management solutions will be combined with FundQuest's expertise in managed accounts to create a global leader with nearly USD 30 billion under management and administration.
- BNP Paribas will use FundQuest as its global brand for wealth management solutions in open architecture in the United States and Europe.
Gilles Glicenstein, Chairman and Chief Executive Officer of BNP PAM, said: "FundQuest is an integral part of the strategic vision to create a global wealth management platform based on best-in-class manager selection and superior technology. We will capitalize on FundQuest's strong position as an independent managed account provider. We will develop a new consultative sales approach, providing our clients with easy to use, high quality advice-based tools. They will benefit from tailor-made wealth management solutions".
Robert Del Col, Chief Executive Officer of FundQuest declares: "We believe that institutions as well as regulators are increasingly demanding investment solutions that will give investors objectivity, transparency, and product neutrality when it comes to wealth management services."
He added: "The potential upside for FundQuest is enormous in our core business as well as in the emerging areas of Retirement Income Planning and bank trust wealth management services".
The transaction is currently subject to approval by regulatory agencies and is expected to close in August. BNP Paribas was advised by Putnam Lovell NBF and BNP Paribas Corporate Finance and FundQuest was advised by Sandler O'Neill.