Wealthtech provider Allfunds has agreed to acquire a majority stake in the share capital of MainStreet Partners, a platform that offers a range of ESG products including ESG investment portfolios as well as scoring and reporting.
Headquartered in London, MainStreet Partners will bolster Allfunds’ ESG offering via two areas:
- For distributors: It will provide a set of ESG tools to help them build an ESG-focused offering, properly assess the ESG profile of funds and portfolios, and report extra-financial results; and
- For fund houses: It will help them to analyse the alignment of their funds to the relevant ESG regulations, assess the sustainability profile of the holdings and produce advanced impact reporting.
MainStreet Partners says on its website that it has over a decade of experience creating ESG multi-asset and multi-manager portfolios. It added that it designs investment solutions with mutual funds, single stocks and bonds using traditional or absolute return benchmarks.
Allfunds will “reinforce its existing offering and strong product suite with the increased capabilities and cross selling opportunities that MainStreet Partners provides”, the firm said in its H1 2022 results on 29 July.
The transaction, which is subject to regulatory approvals, is expected to close in the coming months. The financial terms of the deal were not disclosed.
Most recently, Allfunds acquired Madrid-based fintech firm Web Financial Group for a total consideration of €145m (£121m, $155m).
