Silverfleet Capital backs £50 million Ipes buyout
10 April 2013 Guernsey
Image: Shutterstock
European private equity firm Silverfleet Capital is to buy fund administrator Ipes for £50 million. Silverfleet is acquiring the European firm, which provides fund administration and outsourcing services to the private equity industry, from RJD Partners.
Management detailed plans 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. The firm provides a range of fund administration and outsourcing services to the closed ended asset class with a particular specialism in private equity, also supporting 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 said: “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 added that 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.”
Silverfleet Capital has experience of investing in heavily regulated businesses in the financial services sector, having grown outsourced management and accounting services provider TMF and then sold it on in 2008 for €750 million—achieving a 6.1x money multiple.
Management detailed plans 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. The firm provides a range of fund administration and outsourcing services to the closed ended asset class with a particular specialism in private equity, also supporting 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 said: “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 added that 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.”
Silverfleet Capital has experience of investing in heavily regulated businesses in the financial services sector, having grown outsourced management and accounting services provider TMF and then sold it on in 2008 for €750 million—achieving a 6.1x money multiple.
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