AXA IM’s alternatives arm was “key attraction” for BNP Paribas
AXA Investment Managers’ (AXA IM) alternative asset portfolio will have been a “key attraction” for BNP Paribas when making its acquisition, according to analysts.
BNP Paribas has agreed to buy AXA IM for €5.1bn (£4.3bn), creating a “leading European player” with €1.5tn of assets. The bank will also continue to provide investment services to AXA under a long-term partnership.
The deal will allow the combined businesses to benefit from AXA IM Alternatives’ leading market position and track record in private assets which will drive further growth with both institutional and retail investors, BNP Paribas said.
Jean-Laurent Bonnafé, director and chief executive of BNP Paribas, said the deal would “position BNP Paribas as a leading European player in long-term asset management.”
He added: “Benefiting from a critical size in public and alternative assets, BNP Paribas would serve its customer base of insurers, pension funds, banking networks and distributors more efficiently.”
AXA said the deal would allow it to simplify operations and focus on its core insurance business.
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Joahnn Scholtz, senior equity analyst and banking expert at Morningstar, said that the acquisition was expensive but made sense strategically.
“BNP’s institutional and high-net-worth client base would be a receptive audience for AXA IM’s alternative assets, and BNP could recycle some of its credits through AXA IM’s debt offerings,” he said.
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“The key attraction for BNP would have been the €218bn (around 30 per cent of assets under management) of alternative assets that AXA IM manages, most of which are real estate and private debt.”
The acquisition is expected to close in mid-2025, subject to regulatory approvals.
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