AnaCap buys international arm of Irish advisor

AnaCap, which specialises in European financial services, made its fifth investment from its second private equity fund, which is expected to close during the second quarter of this year.

AnaCap Financial Partners, based in London, is set to pay £70 million (€84m; $112m) for corporate fund advisor IFG’s international division, according to a statement.

The deal is subject to regulatory consent as well as an IFG shareholder vote.

AnaCap will use capital from its second Financial Partner’s fund, which closed in 2009 on €575 million. The fund’s portfolio contains investments in British bank Aldermore, Maltese specialist bank Mediterranean Bank and consumer debt purchasers Cabot Financial.

Steve Pulley, director at AnaCap, led the deal and said in a statement that it presented a rare opportunity to invest in a multi-jurisdictional corporate services provider with a strong management team.

IFG’s international division produced a profit of £8 million in 2011 from advising corporate clients on the administration of fund structures and administrative services that span multiple jurisdictions including Jersey and the British Virgin Islands.

Proceeds from the deal will be used to repay debt, grow the company’s advisory business and return capital to shareholders, Mark Bourke, chief executive of Dublin-based IFG, said in a statement. 

IFG’s Declan Kenny will remain chief executive of the international division after the sale but will resign from the board of the IFG Group.

AnaCap typically uses little debt in its investment and has only €6 million of debt across its portfolio it said. The firm has about €1.61 billion of assets and funds under management.

AnaCap founder Joe Giannamore recently spoke to Private Equity International about the firm’s granular approach and how it can take “unloved, poorly structured subsidiaries of large institutions and also entrepreneurial firms and grow them- via actively managed risk capital.”