European private equity firm Silverfleet Capital is to buy Ipes, a provider of fund administration and outsourcing services to the private equity industry, from RJD Partners. The deal is valued at 50 million pounds ($76.5 million).
Silverfleet Capital, the European private equity firm has agreed to buy Ipes, one of Europe’s leading providers of fund administration and outsourcing services to the private equity industry, in a £50 million transaction, from RJD Partners. Completion is subject to obtaining regulatory clearances. Silverfleet Capital and management’s plans are to develop the business both organically and through acquisition with an emphasis on international expansion.
Ipes was founded in Guernsey in 1998 and today employs 130 staff, administering in excess of $50 billion of assets from four European offices in Guernsey, Jersey, London and Luxembourg. Ipes has over 90 clients and administers 230 funds. Ipes provides a wide range of fund administration & outsourcing services to the closed ended asset class with a particular specialism in private equity. Ipes also supports clients with compliance, banking and the administration of carried interest, co-investment schemes as well as listed funds.
Geraldine Kennell, the partner of Silverfleet Capital responsible for financial services who will join the Ipes board comments: “Ipes has successfully pioneered a specialist approach to private equity fund administration and has an excellent track record. We have a deep understanding of this sector and specifically of working with heavily regulated businesses. The market environment is attractive for a dynamic management team with a clear plan for growth and we have significant experience in this sector to support the development of the business both organically and through buy and build.”
Ian Oxley, partner of Silverfleet Capital who co-led the deal comments: “The outlook for outsourcing of private equity administration is very positive as funds have to manage increasing regulatory and investor demands which are costly to provide in-house. Legislation including AIFMD, FATCA and Dodd-Frank will generate significant new reporting requirements and this in turn will create an opportunity for Ipes as it works with fund managers to ensure compliance with these regulations.”
Kevin Brennan, chief executive of Ipes comments “Silverfleet Capital has been a customer of Ipes for over 10 years and we are really pleased that they have decided to back us in the next phase of our development. We look forward to working in partnership with them to execute our ambitious plans to expand the business and to build upon our market leading position.”
Silverfleet Capital has significant experience of investing in heavily regulated businesses in the financial services sector, having successfully grown TMF to become a leader in the provision of outsourced management and accounting services on a global scale. In 2008 Silverfleet Capital sold the business for 750 million Euros, achieving a 6.1x money multiple and an IRR of almost 60%.
The Silverfleet Capital team that worked on the transaction also included Mark Piasecki and Robert Knight, who are based in Silverfleet Capital’s London office.
Silverfleet Capital was advised by DC Advisory (corporate finance), Travers Smith (legal), Carey Olsen (Guernsey legal), PwC (financial & tax), LEK (commercial) & Kinetic (regulatory). Financing was provided by Lloyds Bank and HSBC.
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Notes to editors:
Silverfleet Capital has been an active European mid-market private equity investor for more than 25 years. Silverfleet Capital works with the management teams of their investee companies to realise “buy to build” strategies. This means working with companies to create value by accelerating their growth through investment for example in new products, production capacity or people, or rolling out successful retail formats or through making follow-on acquisitions also known as Buy & Build. Our portfolio has made approximately 110 follow-on acquisitions since 2000.
Silverfleet Capital has a consistently strong investment track record. Notable exits include TMF, the global independent administrators (6.1x cost), Phadia, the world’s leading allergy diagnostics company (4.8x cost), Histoire d’Or, the European jewellery retailer (3.0x cost), Sterigenics International Inc and European Dental Partners.
In April 2013, Silverfleet Capital, acquired A/S Cimbria, a manufacturer of equipment and processing lines for handling and processing of seed and grain. Silverfleet Capital invested in La Fée Maraboutée, the French wholesaler and retailer of women’s fashion in December 2012; Aesica, the pharmaceutical contract manufacturing organisation in October 2011; Office, the UK footwear business in December 2010; creatrade(1), a leading German catalogue and on-line retailer of fashion, lifestyle and promotional products in October 2010 and Kalle, a leading global producer of artificial sausage casings, in September 2009. The fund will be c.65% invested once the investment in Ipes completes.
Silverfleet Capital manages approximately €1 billion and has offices in London, Paris, Munich and Chicago. This office network enables Silverfleet Capital to execute complex, multi-jurisdictional investments as well as to support investee companies with both domestic and international buy and build strategies.
creatrade Holding GmbH is the holding company for several retail brands including Impressionen, Conley’s, Discovery and schneider.de and formerly traded under the name of Schneider Holding GmbH