US asset manager Janus Henderson Investors has strengthened its partnership with French financial group BNP Paribas as BNP Paribas Securities Services will be responsible for the majority of Janus Henderson’s back office (including fund administration and fund accounting), middle office and custody functions in the US.
According to the terms of the deal, more than 100 Janus Henderson employees currently providing middle and back office functions in the US will become employees of BNP Paribas.
The expansion of the partnership will enable Janus Henderson fund shareholders to benefit from lower administration fees and expenses, resulting from the reduction in overall operating costs associated with back office, middle office and custody functions.
This partnership dwells in BNP Paribas’ 10-year strategic build-out of the firm’s Securities Services business in the US, which started with the launch of global and US custody in 2012.
Also the French group will grow its presence in Denver where one of the manager’s fund servicing hubs will be located.
BNP Paribas will pay Janus Henderson net consideration of approximately $36m for the operations upon closing, which is expected for March 2018.
Andrew Formica, co-CEO at Janus Henderson Investors, said: “The expansion of our partnership with BNP Paribas to include US services is yet another benefit to clients resulting from the merger between Janus and Henderson. BNP Paribas has been an excellent partner since we began our relationship more than 15 years ago.”
Dick Weil, Co-CEO at Janus Henderson Investors, said: “We are excited to announce a partnership that supports the continuity of individuals providing these functions and is expected to provide a seamless transition for clients.”
Patrick Colle, CEO of BNP Paribas Securities Services, said: “We are delighted to further broaden our long-time partnership with Janus Henderson. This is a transformational opportunity for both our US platform and our global funds business. We are now able to offer a complete multi-asset class, middle-to-back office solution, covering all major markets in the world, including the US.”