BNP Paribas SA will take a strategic stake in wealth management platform Allfunds Bank SAU as part of a partnership agreement to develop a platform for fund distribution services.

BNP Paribas Securities Services and BNP Paribas Asset Management Services Grouping will together hold a 22.5% stake in Allfunds, subject to regulatory approvals and consultations, according to an Oct. 21 statement.

The deal will see BNP Paribas Securities Services shifting its Banca Corrispondente local paying agency activities in Italy, along with some Italian transfer agency services, to Allfunds. BNP Paribas will also hand over management of distribution contracts of third-party investment funds for several of its retail, wealth management, insurance and asset management entities to Allfunds.

Allfunds said the transaction will help expand its business proposition to new territories including France and Germany, adding that as a result of the deal, it will open new offices in Paris and Warsaw. The company will continue to operate independently, with majority ownership held by Hellman & Friedman and GIC, it noted.

The deal is expected to close before the end of 2020.