Appleby sells fiduciary business
Farah Ballands, Partner and Global Head of Fiduciary & Administration Services at Appleby
(CNS Business): Offshore trust giant, Appleby, has announced a management buyout of its fiduciary business, AFB, which includes the corporate administration, trust administration and fund services businesses. The deal, for an undisclosed sum, is backed by private equity firm Bridgepoint. Under the terms of the deal, which are subject to certain conditions including regulatory and legal approvals, the Appleby Fiduciary & Administration Business is to be spun off into an independent entity that will re-brand. Around 250 staff will move over to the new firm, according to Farah Ballands, global group head of fiduciary, who will be chief executive of the new business.
“The management team is delighted that we will be partnering with Bridgepoint. With Bridgepoint’s support and expertise in growing businesses successfully, we will be able to develop a greater range of products and services for our clients,” Ballands stated. “The Appleby Group has provided us with a solid foundation and enabled us to grow to the size, reach and scale that we enjoy today, but now is the right time to accelerate our growth plans.”
The name of the new entity will be determined over the course of the next few months. Following the deal, which other media reports state is worth around £240m, Bridgepoint will support the business in its expansion plan, which includes developing more products and services as well as potential acquisitions. Bridgepoint is allegedly making the investment through its €4bn Bridgepoint Europe V buyout fund.
William Paul, partner and head of Bridgepoint’s financial services team, said, “AFB is an exciting platform with a reputation for high quality, client-centric services, and the expertise to deal with the complex needs of its clients. It brings significant opportunity as a standalone business to accelerate its growth organically and via acquisition, in what remains a strongly growing market.”
Appleby’s Group Managing Partner Michael O’Connell, who will continue to lead the law firm post-completion said, “This is an exciting development for Appleby. The transaction will enable two strong businesses to grow and prosper independently, whilst remaining close where it suits the needs of clients.”
Appleby Chairman Frances Woo added, “Being able to respond to client needs by investing in the development of products and services for each business is a key part of our thinking here, coupled with providing essential continuity of service. With the existing management team taking the helm of the new fiduciary company this will ensure that existing clients feel it is very much business as usual.”
The parent company, Appleby Global Group Services, is the world’s second-largest specialist provider of legal, fiduciary and administration services for the cross border financial services industry. In addition to the Cayman Islands, Appleby has offices in Guernsey, Bermuda, the British Virgin Islands, Jersey, Hong Kong, the Isle of Man, London, Mauritius, the Seychelles and Shanghai.
Both businesses intend to reinvest capital resources to continue providing client-focused, leading-edge solutions, whilst remaining competitive in their respective markets.
Category: Finance, Financial Services
