August 02, 2024 at 6:37AM EDT -- BNP Paribas SA’s Jean-Laurent Bonnafe built a reputation as reluctant dealmaker in more than 12 years at the helm. Now he’s willing to bet €5.1 billion that demand for alternative assets will continue to increase.
The purchase is the biggest yet for the BNP CEO, who until now shied away from big takeovers, deciding instead to return excess cash to shareholders after selling U.S. lender Bank of the West for US$16.3 billion last year. The proposed deal would allow BNP to challenge Europe’s No. 1, Amundi SA, although it would still be dwarfed by U.S. firms such as BlackRock Inc. or Vanguard Group Inc.
Private markets are the fastest-growing part of asset management, with alternative assets overall expected to reach nearly $40 trillion by the end of the decade, according to BlackRock. The U.S. company this year agreed to buy private capital database provider Preqin. In January, it announced a deal to acquire Global Infrastructure Partners to further expand its offerings beyond primarily stocks and bonds.