HSBC Holdings Plc is in advanced negotiations to sell its German fund administration business, Inka, to private equity firm BlackFin Capital Partners, Bloomberg reports based on sources. Inka oversees approximately €400 billion in assets under administration. A deal could be reached within weeks, though final terms are still being negotiated.
HSBC is also in discussions with BNP Paribas SA over a potential sale of its German custodian business. No agreements have been finalised, and other buyers could still emerge. HSBC has been marketing Inka and the custodian unit together, with reports suggesting the combined sale could be worth several hundred million euros, Bloomberg reports.
Focus shift
The potential sales follow a series of divestments by HSBC as it shifts focus toward Asia. Last year, BNP Paribas agreed to acquire HSBC’s private banking operations in Germany. “We are reviewing our strategic options with regard to our securities services business in Germany,” HSBC said in a statement after inquires from Bloomberg. “No decision has yet been made, so we will not comment further on this.” BNP Paribas declined to comment, and BlackFin has not responded to inquiries.
BlackFin has been acquiring financial services businesses in recent years, including a majority stake in digital investment platform IKS from German asset manager DWS Group. If completed, the Inka acquisition would expand its role in the European fund administration sector.
