BV Investment Partners said on Thursday that it has sold Butterfield Fulcrum to Mitsubishi UFJ Trust and Banking Corporation. No financial terms were disclosed. Evercore Partners served as financial advisor to BV on the transaction. Butterfield Fulcrum is a hedge fund administrator and service provider to the alternative investment industry.
Boston, June 20, 2013 – BV Investment Partners (“BV”), a lower middle-market private equity firm focused on the information and business services and communications sectors, today announced the sale of portfolio company Butterfield Fulcrum, a leading independent hedge fund administrator and service provider to the alternative investment industry, to Mitsubishi UFJ Trust and Banking Corporation (“MUTB”).
BV identified the proprietary investment opportunity with Butterfield Fulcrum through an introduction from a member of its Operating Advisory Board. The acquisition, made in partnership with industry executives Glenn Henderson and Tim Calveley in 2011, combined Butterfield Fulcrum Group and FORS to form a new platform company serving the alternative asset class and laid the groundwork for its future growth. With its comprehensive suite of products and services, the company today is a leading independent services provider with 25 years of experience providing a full service fund administration offering including front, middle and back solutions to hedge funds, fund of funds, managed accounts, private equity and real estate funds. The company services more than 850 funds and has seven offices in six countries and employs over 325 people.
Justin H. Harrison, a Managing Director at BV, said, “We were delighted to partner with Glenn and Tim to help transform the company. After we acquired the business, the new company instituted a renewed focus on client service, launched technology-enabled products, and overhauled its software and IT development capabilities. The company also initiated an active sales outreach effort that resulted in significant new business from both existing and new clients. After two years of very strong growth under our ownership, we are confident the company will continue to capitalize on its potential and grow further as a valuable asset within a global financial services institution like MUTB.”
Glenn Henderson, Chief Executive Officer of Butterfield Fulcrum, said, “It was a great pleasure to work with the BV team whose knowledge of the information services sector and support helped us grow the business.
We are excited to enter this new partnership with MUTB as it is a very positive move for the company and our Vikrant Raina, Managing Partner of BV, added, “This transaction demonstrates our strategy of backing strong management teams and leveraging our core expertise to grow and transform businesses. This was the largest investment from our Fund VII and we are delighted to achieve a very successful outcome for our investors over this two-year period.”
The transaction is subject to normal regulatory and government approvals. Evercore Partners served as exclusive financial advisor to BV on the transaction and Ropes & Gray provided legal counsel.
BV Investment Partners is currently investing its eighth private equity fund. The Firm 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 80 companies, actively targeting investments in the information and business services and communications industries. For more information, please visit www.bvlp.com.