B2B WealthTech platform Allfunds announced today an agreement to acquire a majority stake in ESG investment solutions provider MainStreet Partners, aiming to enhance its capabilities with ESG services and analytics, and benefit from the growing sustainable investment market.
Founded in 2008, London-based MainStreet Partners provides a “one stop shop” for the sustainability requirements for clients including wealth managers, asset managers, investment banks, and institutional investors, offering both ESG advisory and Portfolio Analytics services and solutions. On the advisory side, Mainstreet helps create ESG multi-asset and multi-manager portfolios, providing manager selection, direct investment, and model portfolio services. Analytics solutions include fund sustainability ratings, bespoke sustainability intelligence aligned with emerging regulations, and ESG evaluation for portfolios.
According to Allfunds, the acquisition – the company’s third this year – forms part of the company’s strategy to build its capability set to with an enhanced value proposition, products, and toolset. Speaking on the company’s H1 2022 conference call, Allfunds CEO Juan Alcaraz said that the deal addresses a gap in the market for ESG-related services.
“Listening to our clients, we clearly detected that our clients on both sides – distributors and fund houses – needed something, and were asking Allfunds to help them with ESG.”
Allfunds said that it expects the transaction to close in Q1 2023.