For some time, private equity (PE) has been the major driver of M&A activity in the Trust, Corporate and Fund services market. Investors have been attracted by the strong underlying drivers of increasing regulation in financial services, the predictability of earnings of many business models in the sector, and the potential for growth through buy & build – despite the consolidation that has already taken place.
This continues to be the case today, as we hear news that PE firm LDC is to sell Equiom, its corporate service provider, with the new owner likely to be another PE house. News also that Bridgepoint Capital funded Estera, provider of fiduciary and administration services, is acquiring a further bolt-on.
Leading global fiduciary and administration provider, Estera, has acquired the Heritage Financial Services Group (HFSG), an independent business providing third party fund administration, depositary, trust and corporate services in Guernsey, the UK and Malta. The transaction was finalised on Monday 05 June and is subject to regulatory approvals, following which the business will be rebranded under the Estera name. Farah Ballands, CEO of Estera, said: ‘We are delighted to welcome HFSG to the Estera family; a team with an excellent reputation in client service, a value which is core to Estera.’ ‘This transaction, together with our acquisition of Guernsey-based Morgan Sharpe earlier this year, is central to the expansion of our funds service line, whilst also expanding jurisdictional choice for our trust and corporate clients,’ concluded Farah.