BNP Paribas has agreed to take over HSBC’s hedge fund administration business, further strengthening the French banking group’s asset servicing franchise for liquid alternatives and hedge fund managers.
Under the exclusive agreement, HSBC’s hedge fund administration business will be transferred to BNP Paribas entities in several markets, including Hong Kong, Singapore, Ireland, and Luxembourg. The transfer of services will be offered to 25 clients globally and will involve the integration of certain employees within BNP Paribas’ expert teams.
The deal is expected to be completed by the end of 2024, following the finalization of client migrations.
The proposed transfer of services aligns with BNP Paribas’ integrated bank strategy, which offers a full suite of front-to-back liquid alternative and hedge fund outsourcing solutions – from core fund administration through to depositary, custody, cash, FX, financing, global markets, and prime brokerage solutions.
Philippe Benoit, head of strategic business development and transformation, Securities Services, at BNP Paribas, says: “The liquid alternatives and hedge funds sector is a focus area for BNP Paribas. We have steadily invested in this field, with a strong emphasis on our integrated and innovative banking solution range across BNP Paribas’ securities services and global markets business lines.
“Our hedge fund administration offering fully leverages the strengths of BNP Paribas’ integrated banking model, combined with our far-reaching approach to digital innovation and client service.”