Estancia Capital Partners has acquired a minority interest in Equinoxe Alternative Investment Services. Financial terms weren’t announced. Bermuda-based Equinox is an alternative fund administration firm with over $12.5 billion of assets under administration. Barrington Partners provided financial advice to Estancia.
SCOTTSDALE, Ariz.–(BUSINESS WIRE)–Estancia Capital Partners, L.P. (“Estancia”), a leading private equity fund focused exclusively on the global asset management, wealth management and related business services industries announced today that it has acquired a minority interest in Equinoxe Alternative Investment Services (“Equinoxe”) joining XL Group plc (NYSE: XL) as a strategic investor in the firm. Terms of the transaction were not disclosed. Equinoxe is an award-winning boutique full-service alternative investment fund administration company.
“Equinoxe is a premier service provider within the global alternative investment fund administration space led by a proven management team that has previously successfully built two similar service businesses,” said Danny Kang, a Partner at Estancia. “We look forward to working closely with the team to source acquisition opportunities, support new product solutions and execute on its strategic corporate development plan leveraging Estancia’s deep network of relationships including alternative managers, lawyers, accountants and industry consultants.”
Equinoxe will reinvest the proceeds of the investment into the firm to i) launch new client coverage offices including Singapore and Malta, ii) expand the features of its cutting edge solutions for hedge funds, private equity funds and insurance clients, and iii) hire additional client service and operational personnel around the globe. Equinoxe will continue to operate independently and under the leadership of the existing management team that owns a meaningful equity stake in the business.
“Our firm is on a rapid growth trajectory and we continue to invest in our people, our products and technology, and geographic footprint to remain an industry leader,” said Stephen Castree, Equinoxe’s Founder and CEO. “We are delighted to partner with Estancia. The principals share our vision and fully support our commitment to further enhancing the client experience and continuing our growth plan through reinvestment. We also believe Estancia can provide advice regarding strategic acquisition opportunities as our industry continues to experience consolidation.”
Stuart Drake, Chairman of Equinoxe, commented that “the administration industry has a few very large players, catering to the largest funds, that have departmentalized client servicing and have lost their local touch. Equinoxe will continue to build its business and brand with our high-touch, swift response model. Estancia is the right partner for us because they understand our business and what it takes to be differentiated and successful.”
Barrington Partners of Boston assisted Estancia in the due diligence process.
Equinoxe is a premium boutique service provider founded in 2007 by experienced hedge fund administration professionals. Headquartered in Bermuda, Equinoxe’s global reach includes additional offices in Dublin, Sligo, Atlanta, Malta and Mauritius. Equinoxe is a full-service alternative fund administration firm with over $12.5 billion of assets under administration (“AUA”) from over 150 alternative investment funds. As reported by the Q4 2012 eVestment Hedge Fund Administrator Survey, Equinoxe was the second fastest growing hedge fund administrator with AUA up 38% for the trailing six month period ended 12/31/2012.
Estancia is a private equity firm focused on small to lower middle market investments in Institutional Quality asset management, wealth management and related business services firms. The Principals – Messrs. Mendez, Moriuchi, Kang and Kurttila – have a history of partnering with management and investment teams in providing equity, growth and working capital to facilitate strategic and opportunistic development of portfolio companies including management buy-outs from larger financial firms, private ownership/succession transitions, growth initiatives and investment team lift-outs. Estancia is currently investing its first institutional fund, Estancia Capital Partners, L.P., on behalf of a diversified base of over 30 Limited Partners.