Santander Said to Consider Selling Stake in Allfunds Business

  • The sale may value the investment business at $2.2 billion
  • Santander Asset Management holds 50% of Allfunds Bank

Santander Asset Management is weighing options for its holding in its Allfunds Bank SA investment platform, including a sale of its 50 percent stake, people familiar with the matter said.

The entire business could be valued at about 2 billion euros ($2.2 billion) and attract interest from private equity firms, said the people, who asked not to be identified because the deliberations are private. The discussions are at an early stage and the company may decide to hold on to its stake, the people said.

Santander Asset Management is controlled by Banco Santander SA and U.S. buyout firms Warburg Pincus and General Atlantic. Italy’s Intesa Sanpaolo SpA holds the other 50 percent stake. Representatives for Santander Asset Management and Intesa declined to comment.

Allfunds reported profit of 69 million euros in 2015, up from 46.4 million euros a year earlier, according to the company’s financial report.

Santander created Allfunds in 2000 to help financial institutions get access to so-called open architecture funds. Italian lender Intesa acquired a stake in 2004 as part of Allfunds’s international expansion. The company has offices in Spain, Italy, the U.K., Chile, Colombia, Dubai, Luxembourg and Switzerland.

— With assistance by Sonia Sirletti, Aaron Kirchfeld, and Esteban Duarte

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