A BNP Paribas news release , said the purpose of the deal was to form a single entity that uses open architecture to deliver wealth management services for institutions and advisors. BNP Paribas will use the Boston, Massachusetts-based FundQuest as its global brand for wealth management in open architecture in both the United States and Europe, the news release said.
According to the announcement:
- BNP Paribas will make a “major move” in managed accounts in the US, a segment of the US investment industry with “strong growth potential”
- FundQuest will join with Cortal Consors Fund Management (CFM) in Europe, a subsidiary of BNP Paribas and a provider of open architecture and investment advisory services with $18 billion under management. CFM’s existing multi-management services will be combined with FundQuest’s offerings in managed accounts for a combined total of nearly $30 billion under management
The transaction is currently subject to approval by regulatory agencies and is expected to close in August, the companies said.