Electra Partners has agreed to buy the fund administration arm of offshore law firm the Ogier Group for £180 million ($295 million; €218 million).
The UK-based group will invest £83 million in the management buyout of Ogier Fiduciary Services via its London-listed trust Electra Private Equity, according to a statement.
Established in 1998 by the Ogier Group, Ogier Fiduciary Services provides trust, fund and company administration services to corporates, private clients and investment funds.
Ogier Fiduciary Services currently employs 450 people across 10 jurisdictions. It will continue to be led by chief executive Paul Willing, supported by the current executive team, the company said. Under Electra’s ownership, it hopes to open more offices internationally and make add-on acquisitions, Willing said, adding that there would be no change to clients' existing relationship management teams.
Electra’s chief investment partner Alex Fortescue cited increasing regulation and internationalisation of the corporate and investment management markets as the main rationale for Electra’s investment in the business.
“This is a primary buyout of a non-core business, so I think there’s a real opportunity to bring focus and access to capital to bear so that the business can develop its full potential,” Electra investment partner, Chris Hanna, told Private Equity International.
Debt facilities for the transaction will be provided by a group of lenders comprising HSBC, Lloyds Banking Group, RBS, Babson Capital Europe and Alberta Investment Management.
The deal remains subject to conditions, including regulatory approval.
Electra’s acquisition follows its £85 million investment in Hotter Shoes in January. The firm also accelerated its deal activity last year: it invested £337 million in the first three quarters of last year, more than double the £150 million it invested in the same period the previous year. This comprised five investments, including holiday parks operator South Lakeland Parks, which it acquired for £47 million.