3i buys $57m stake in hedge fund administrator(2)

3i’s US arm has bought a stake in a Bermuda-based hedge fund administrator, in the latest move in an active year for the firm.

3i Growth Capital, the US arm of the UK-based private equity firm 3i, announced today that it has acquired a $57 million (€42 million) minority stake in Fulcrum, a global hedge fund administrator based in Bermuda. The deal is the first investment by 3i’s US arm.

The all-equity investment will help grow Fulcrum’s business and provide liquidity to shareholders, 3i said in a statement. Fulcrum plans to use the new funds to add new middle office service offerings, and to expand the company’s operations into Europe and Asia.

Akshaya Bhargava of 3i will become Fulcrum’s chief executive officer. Bhargava has worked for 3i for one year, before which he was chief executive officer of Progeon, a BPO services company which he grew from a start-up. He has also held various positions at Citibank in India, the Czech Republic, and the UK.

Fulcrum’s current chief executive officer, Glenn Henderson, will become chief sales officer.

3i has been developing a series of new vehicles in recent months. 3i Quoted Private Equity sold 400 million shares at £1 each via a share placement, all of which were issued today, for a fund designed to invest in small and mid-sized public European companies. It has also launched a listed infrastructure fund and announced a joint venture with an Indian infrastructure firm.

These new additions follow a successful year for the firm, during which it returned $1.6 billion to investors. The firm specialises in buyouts, growth capital, venture capital, infrastructure, and quoted private equity.