BV Investment Partners, the former Boston Ventures, agreed to buy Butterfield Fulcrum and FORS Ltd. Financial terms of the deal, which is expected to close in first quarter, weren’t announced. Butterfield Fulcrum, a hedge fund administrator, and FORS, which provides accounting and reporting services, will be owned by one parent company based in Bermuda. However, they will operate separately. Glenn Henderson will serve as CEO while Tim Calveley will be COO. Both execs will also have stakes, a statement said.
BV Investment Partners (formerly Boston Ventures), a leading middle market private equity firm investing in the information and business services, communications, publishing, media, and entertainment sectors, today announced it has signed an agreement to acquire Butterfield Fulcrum and FORS Limited in partnership with industry veterans Glenn Henderson and Tim Calveley. The combined entity will provide comprehensive outsourcing solutions across the alternative investment management, family office and trust industries.
The investment is the combination of Butterfield Fulcrum, a leading independent hedge fund administrator with more than 20 years of experience, and FORS Limited, an independent provider of wealth management reporting and administrative services to family offices, multi-family offices, trust companies and private clients.
Butterfield Fulcrum and FORS will be brought together into one parent company, headquartered in Bermuda. They will operate as separate businesses and continue to be run by their current management teams.
Mr. Henderson and Mr. Calveley will serve as Chief Executive Officer and Chief Operating Officer of the parent company, respectively and maintain a significant equity stake in the combined entity. Mr. Henderson will take on the role of CEO of Butterfield Fulcrum. This transaction reunites Messrs. Henderson and Calveley with Butterfield Fulcrum where they previously served as senior executives, Mr. Henderson as CEO and Mr. Calveley as Chief Financial Officer and Chief Risk Officer. In 2009, they acquired FORS where Mr. Calveley serves as CEO.
Justin H. Harrison, a Partner at BV Investment Partners, said, “The acquisition of Butterfield Fulcrum and merger with FORS will build a leading provider of business services in the alternative asset sector. We are excited to partner with Glenn and Tim, in the management buyout of Butterfield Fulcrum, and believe that their leadership in partnership with the existing managers will enhance Butterfield Fulcrum’s position as a premier provider of fund administration services.”
“This is an exciting opportunity that reunites Tim and me with the senior management team of Butterfield Fulcrum whom we know well,” said Mr. Henderson. “We share the same guiding principles and our complete focus will be on continuing to deliver quality service to our clients.” Mr. Calveley said, “Butterfield Fulcrum and FORS as part of a combined organization will have the synergies to provide great value to clients through our service offerings and technology platforms. With the help of BV Investment Partners and management, we will build the company into the leading provider of comprehensive outsourcing solutions across the alternative investment management, family office, and trust industries.”
Vikrant Raina, Managing Partner of BV Investment Partners, said, “Fund administration in the alternative investment sector is becoming increasingly complex as a result of new regulatory oversight and other factors changing the dynamics of the industry. In addition, cost efficient and sophisticated customized reporting solutions for the family office sector is a growing market. The combination of Butterfield Fulcrum and FORS creates a company with the scale, diverse suite of services, global presence, and expertise of an experienced management team that can effectively serve the needs of clients. We look forward to working with Glenn and Tim to further the company’s experienced team, technology advantage, and global scope.”
Mr. Raina, Mr. Harrison, and Mr. Sean Wilder will be joining Glenn and Tim on the Board of Butterfield Fulcrum.
The transaction is subject to regulatory and government approvals and is expected to close in the first quarter of 2011. Morgan Lewis and Ropes & Gray represented the purchaser and investors in this deal.
About Butterfield Fulcrum
Butterfield Fulcrum is a leading independent hedge fund administrator with more than 20 years of experience. Headquartered in Bermuda, it has offices in nine countries and services over 800 funds. The business is committed to providing clients with exceptional operational risk management capabilities through customized and transparent fund administration solutions. Butterfield Fulcrum offers a full service administration platform to: Hedge Funds, Fund of Funds, Managed Accounts, Private Equity and Real Estate Funds.
FORS Limited is an independent global organization providing accounting and reporting solutions to Family Offices, Multi-Family Offices, Trust Companies and Private Clients. FORS has offices in Bermuda, New York, Singapore and Toronto. The FORS team is committed to providing an exceptional level of personalized service focusing on meeting the unique demands of our clients, utilizing a leading family office web based technology platform to provide reporting solutions on client assets in excess of $25 billion. Its range of services include: a comprehensive accounting solution for family offices and trustees, preparation of financial statements, customized reporting solutions, investment monitoring, performance reporting and family office administrative services. For more information, please visit www.fors.bm.
About BV Investment Partners
BV Investment Partners is one of the oldest and most experienced sector-focused private equity firms in North America. Since its founding in 1983, the firm has invested over $2.6 billion in over 70 companies, actively targeting investments in the information and business services, communications and media industries. For more information, please visit www.bvlp.com.