London-listed Electra Private Equity has agreed to sell fund administrator Elian to trust and corporate service provider Intertrust Group for £435 million ($627 million; €552 million).
The transaction is subject to regulatory and Intertrust Group shareholder approvals, according to a statement from Electra Partners, which is the investment manager for Electra Private Equity.
Following the completion of the transaction, which is expected during the third or final quarter of 2016, Electra expects to receive total profits of around £200 million, which equates to a return of around 2.6x original cost and an anticipated IRR of about 50 percent, according to the statement.
Elian provides offshore trust and corporate services to 3,000 clients, including corporates, financial institutions and investment funds. The firm operates out of offices in 16 cities across Europe and Asia.
Electra Private equity recently reported that it has made a total return of 15 percent in the six months to 31 March 2016, outperforming the FTSE All-Share by almost four times, as reported by Private Equity International.
So far this year the listed trust has made realisations of £384 million, including full exits of fine art materials supplier Daler-Rowney and Zensar Technologies.
Electra also committed to invest £203 million during the period, comprising two platform deals – PhotoBox and Grainger Retirement Solutions – as well as several debt investments. As at 31 March 2016, Electra held six debt investments with an aggregate value of £59 million.
Electra led the buyout of Elian from the Ogier Group in June 2014. Since the acquisition, Electra has worked closely with Elian’s management team to accelerate growth of the business, expanding it internationally and focusing on operational excellence and mergers and acquisitions, according to the statement.
As a part of its global expansion, Elian acquired corporate service provider SFM Europe in December last year. The acquisition increased Elian’s head count by 115, to 640 employees, and significantly expanded the firm’s European footprint and corporate services offering.
This year Elian has made a number of notable appoints and promotions, including Paul Lawrence, who was promoted to head of European funds in a role which sees him oversee Elian’s 130-strong European funds team, alongside the firm’s Asia funds operations, as reported by sister title pfm.
Last week, the board of Electra Private Equity served 12 months’ notice on Electra Partners, as reported by PEI. It is unclear who will take over managing its investments when the notice period expires.