International Private Equity Firm Cinven Buys Majority Stake in Alternative Investment Technology & Administrator Alter Domus at $5.3 Billion Valuation from Private Equity Group Permira, Alter Domus Manages 30,000 Client Structures with $2.5 Trillion Assets under Administration
16th March 2024 | Hong Kong
International private equity firm Cinven has announced to buy a majority stake in alternative investment technology & administrator Alter Domus at $5.3 billion valuation (€4.9 billion) from private equity group Permira. Alter Domus manages 30,000 client structures with $2.5 trillion Assets under Administration (AuA). Cinven won the acquisition weeks after leading private equity group TPG with $222 billion AUM (Assets under Management) had proposed to buy Alter Domus for $4.9 billion (€4.5 billion) in late February 2024. Cinven (4/3/24): “International private equity firm Cinven today announces that it has reached an agreement to make a majority investment in Alter Domus, a leading global provider of end-to-end tech-enabled fund administration and corporate services across three sectors: private equity, real assets and private debt. All existing shareholders, including the Company’s Founders and the Permira Funds, will sell approximately half of their shares to Cinven, and retain a significant investment in Alter Domus going forward. Established in 2003 and headquartered in Luxembourg, Alter Domus is one of the largest fund administrators globally, with over $2.5tn assets under administration (AuA). The firm has grown rapidly to meet the evolving needs of its client base, building a global network that now spans 23 jurisdictions, servicing 90% of the top 30 asset managers globally. Since 2021, Alter Domus has increased revenue by 54% and grown AuA by 69%.” More info below:
“ International Private Equity Firm Cinven Buys Majority Stake in Alternative Investment Technology & Administrator Alter Domus at $5.3 Billion Valuation from Private Equity Group Permira, Alter Domus Manages 30,000 Client Structures with $2.5 Trillion Assets under Administration ion from Private Equity Group Permira, Alter Domus Manages 30,000 Client Structures with $2.5 Trillion Assets under Administration “
Rory Neeson, Partner and Head of Cinven’s Business Services sector team: “Cinven is delighted to make this investment in Alter Domus. Fund services has been a priority subsector for Cinven’s Business Services team for some time due to the attractive business model characteristics and strong growth drivers. We have followed Alter Domus closely over many years and admired it as a global leader with blue-chip clients and leading service levels. Looking forward, we see significant potential for further growth and look forward to working with the management team and shareholders in the next phase of its journey.”
Maxim Crewe, Partner and Head of Cinven’s Financial Services sector team: “Alter Domus is well positioned to benefit from the strong growth in the fund services market, underpinned by the structural expansion in private capital markets, greater regulation and further outsourcing. The Company is a leading player in the industry with a differentiated service proposition, and we see a compelling opportunity to leverage Cinven’s Financial Services sector knowledge and global footprint to help the business continue this trajectory.”
Doug Hart, CEO of Alter Domus: “With an enviable track record of investing in fast-growing, world-class businesses, we are thrilled to welcome Cinven as an investor in Alter Domus. Cinven shares our strategic vision and commitment to developing long-term technology-enabled partnerships with the leading alternatives firms globally through the delivery of operational and client service excellence. Together we look forward to further accelerating our international growth and delivering innovative new services to our clients.”
International Private Equity Firm Cinven Buys Majority Stake in Alternative Investment Technology & Administrator Alter Domus at $5.3 Billion Valuation from Private Equity Group Permira, Alter Domus Manages 30,000 Client Structures with $2.5 Trillion Assets under Administration
4th March 2024 – International private equity firm Cinven today announces that it has reached an agreement to make a majority investment in Alter Domus, a leading global provider of end-to-end tech-enabled fund administration and corporate services across three sectors: private equity, real assets and private debt. All existing shareholders, including the Company’s Founders and the Permira Funds, will sell approximately half of their shares to Cinven, and retain a significant investment in Alter Domus going forward.
Established in 2003 and headquartered in Luxembourg, Alter Domus is one of the largest fund administrators globally, with over $2.5tn assets under administration (AuA). The firm has grown rapidly to meet the evolving needs of its client base, building a global network that now spans 23 jurisdictions, servicing 90% of the top 30 asset managers globally. Since 2021, Alter Domus has increased revenue by 54% and grown AuA by 69%.
Cinven has spent significant time targeting investment opportunities in the fund services subsector, given its attractive and resilient characteristics, underpinned by structural growth in the alternative assets space. Cinven’s Business Services and Financial Services sector teams worked together in close partnership to acquire Alter Domus, identifying the following key investment attractions:
- Its impressive financial track record, with Alter Domus having consistently outperformed the market, delivering double-digit organic growth and attractive margin performance;
- Alter Domus represents a scarce, market-leading global fund services platform that delivers market-leading service levels to a blue-chip customer base including 90% of top-30 asset managers served;
- It is a proven M&A platform in the fragmented fund services market that has a successful track record of acquisitions, and a strong further pipeline of potential buy and build opportunities across a range of markets and geographies;
- The company operates in attractive markets, with the fund services subsector benefitting from the structural growth of private capital markets, increasing regulation and a continued trend towards outsourcing of fund services, together with downside-protection through strong revenue visibility and cashflow generation;
- Alter Domus has received significant investment in the tech-enablement of the Company – resulting in best-of-breed third-party platforms, workflow automation and a leading data and analytics product capability to better serve the increasingly complex needs of its global client base; and
- It has an experienced and highly respected management team that has led the strong performance to date.
Through this transaction, Cinven will support the long-term strategic growth of Alter Domus, working in close partnership with Alter Domus’ founders and Permira.
Drawing on its global platform and leveraging the expertise of both its Business Services and Financial Services sector teams, and its Digital Hub team, Cinven will support management to accelerate growth across key regions and customer verticals and invest further in developing Alter Domus’s leading tech-enabled and digital offerings to its clients.
The transaction is subject to regulatory approvals and other customary closing conditions.
$222 Billion Private Equity Group TPG Proposed to Buy Alternative Investment Technology & Administrator Alter Domus for $4.9 Billion from Private Equity Group Permira, Alter Domus Manages 30,000 Client Structures with $2.2 Trillion Assets under Administration
24th February 2024 – Leading private equity group TPG with $222 billion AUM (Assets under Management) has proposed to buy alternative investment technology & administrator Alter Domus for $4.9 billion (€4.5 billion) from private equity group Permira. Alter Domus manages 30,000 client structures with $2.2 trillion Assets under Administration (AuA).
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