Allfunds Group announce full year results for the period ended 31st December 2021

February 25, 2022

Allfunds Group plc, one of the world’s leading B2B WealthTech platforms connecting fund houses and distributors, announced its preliminary unaudited results for the year ended 31 December 2021.

Key Highlights

Assets under administration up 29% since 31 December 2020 to €1.5 trillion
Net organic flows (excluding market performance) of €151bn or 20% over beginning of period (BoP) AuA, including record AuA migrations from new clients
Net revenues of €506m with a 37% increase year-on-year on a Pro-Forma basis
Adjusted EBITDA of €367m, implying an Adjusted EBITDA margin of 73%
169 new fund houses added to the platform and 85 new distributors onboarded
Results ahead of their IPO guidance; strong 2022 outlook despite current market volatility
Today, Allfunds Group will announce the appointment of their new Chief Financial Officer, Álvaro Perera

Juan Alcaraz, Chief Executive Officer and Founder, said:

“2021 was a milestone year for Allfunds, defined by our successful IPO on Euronext Amsterdam, and the delivery of strong financial performance and growth in our key international markets. I am proud of the role Allfunds continues to play in providing innovative, market-leading solutions in fund distribution, serving as a much-needed source of efficiencies against an increasingly complex market backdrop.

Since our IPO in April, we have continued to add new clients, strengthen our product offering, efficiently onboard new fund houses and continue our pursuit of attracting and retaining industry-leading talent.

In addition to the senior hires made across the business during 2021, it gives me great pride to announce the appointment of Álvaro Perera as Chief Financial Officer. Álvaro is our current head of FP&A and M&A and has been instrumental to Allfunds’ IPO as well as to its inorganic growth strategy. Even though he joined Allfunds in 2017, we have had a continued working relationship for many years, the greater part of his 15-year career in the financial services industry. Allfunds is committed to identifying and growing talent internally and Álvaro is a true testament to this. He brings strong knowledge of Allfunds and the sector in which we operate. Álvaro will form an important part of our executive leadership team and reinforce our commitment to deliver strong financial performance for clients and shareholders.

I would like also to take this opportunity to thank Amaury for his valuable contribution to the development and strengthening of Allfunds over the past year and a half, in which Amaury and Álvaro have worked closely together. Amaury will remain with the company until 31 March to ensure a smooth and effective transition.”

Business Highlights

Allfunds’ market position strengthens year-on-year, supported by its innovative approach to client service, and continued investment in proprietary technologies and solutions. The Company continues to deliver strong operational performance in line with the compelling building blocks of growth established at the IPO.

The Company keeps on winning market share, accelerating the flywheel effect[3]:

Record year of migrations and distributors onboarded (85). The Company has managed to gain roughly half of the new clients from direct competitors, which signals the strong value proposition offered, and to attract clients from potential growth markets such as Asia and LatAm.
In terms of fund houses added to the platform (169), this year represents another landmark year with a predominance of fund houses coming from expansion markets such as France, Sweden and Asia.

The Company continues to capitalise on new business initiatives and continued digital product enhancements to meet evolving needs of clients and their end customers. During the period, Allfunds has strengthened its customer proposition with continued investments to develop its proprietary technologies through its digital ecosystem, Allfunds Connect:

Continued evolution of Telemetrics tool, to deliver comprehensive market data and intelligence resources to support clients’ new business growth and meet the increasingly data-driven needs of clients in the current market environment.
Upgrade of Nextportfolio, the only portfolio monitoring and reporting tool in the market with the capacity to deliver discretionary portfolios at scale, to facilitate optimisation by asset allocation and the analysis of fund performance contribution.

Allfunds’ subscription-based business continues its positive trend and has achieved 45% growth in revenues in 2021, to €20m. The number of average monthly users of Connect has also increased 32% to almost 7,200, reflecting the strong additional potential of this tool to enhance customer engagement.

Additionally, Allfunds has further extended its product offering:

The launch of Allsolutions, a B2B sub-advisory platform providing fund of fund managers and discretionary portfolio managers with solutions to optimise their portfolios and deliver greater efficiencies for fund transfers.
Unique access to private capital markets, where Allfunds´ clients will have a one-stop-shop offering for both liquid and illiquid investment solutions
Relevant progress with Allfunds Blockchain through i) the successful execution of the first orders of a new tokenized fund on the Spanish Regulatory Sandbox initiative and ii) launching “FAST” in Spain and Italy, the innovative solution to deliver efficiencies in investment fund transfers using Allfunds’ unique blockchain technology
ESG value-added rating at fund and portfolio level, with SFDR[4] fund categorisation

The creation of a sustainable business model remains a priority for Allfunds. In 2021, the Company has reinforced its commitment to this endeavour and has embedded ESG in its strategy, actively promoting stakeholder engagement and aligning with major ESG International standards such as Global Compact and Principles for Responsible Investment (PRI).

Allfunds’ network of international partnerships remains a strategic differentiator for the business. During 2021, Allfunds activated partnerships with world-leading service providers, with the goal of attracting new clients, creating efficiencies and revenue synergies for existing clients and their end-customers, and underpinning the Company’s future value creation. One such strategic partnership provides the Company´s global network of distributors with access to private market investment opportunities.

The Company has pursued opportunities to expand its international footprint in key global markets through the appointment of senior talent to lead growth initiatives overseas. Over the period, Allfunds has made strategic executive hires in France, Hong Kong and Iberia. Attracting and retaining senior talent is a critical step in furthering the Company’s growth ambitions, and strengthening the overall service provided to clients in key regions. Additionally, Allfunds received Board approval to operate a WOFE (Wholly Owned Foreign Enterprise) in Shanghai, which will allow the sale of its digital capabilities in Mainland China further bolstering its global expansion.