Butterfield Fulcrum Changing Hands
Fund industry executives Glenn Henderson and Tim Calveley announced today [Feb. 9] that they have partnered with BV Investment Partners, a leading middle market private equity firm, in an agreement to acquire Bermuda fund administrator Butterfield Fulcrum.
The Butterfield Fulcrum investment follows their 2009 acquisition of FORS Limited, an independent provider of family office and wealth management reporting and administrative services. Butterfield Fulcrum and FORS will be brought together into one parent company, headquartered in Bermuda. They will operate as separate businesses and continue to be run by their current management teams.
Butterfield Fulcrum was created in 2008 after the merger of Fulcrum Group — a leading global administrator for hedge funds and the alternative asset management industry — and Butterfield Fund Services (BFS), an administration services for investment and pension funds and part of Bermuda’s Bank of N. T. Butterfield & Son Limited.
Today’s transaction, subject to regulatory and governmental approvals, is expected to close before the end of March, 2011. Butterfield Fulcrum is currently owned by 3i Group plc and The Bank of N. T. Butterfield & Son Limited. Upon completion of the transaction, Messrs. Henderson and Calveley will have significant ownership stakes, along with BV Investment Partners. Financial terms of the transaction were not disclosed.
“This investment reunites Tim and me with the senior management of Butterfield Fulcrum,” said Glenn Henderson, who will take on the role of CEO of the parent company and Butterfield Fulcrum. “Tim and I know the current management team well. We share the same guiding principles and our complete focus will be to continue to deliver quality service to our clients.”
“Both Butterfield Fulcrum and FORS have excellent management teams and provide great value to our clients through our service offerings and technology platforms,” said Tim Calveley, who will become COO of the parent company while continuing as CEO of FORS. “We have structured the group with our clients’ needs in mind. The respective teams of both companies will provide the same level of expertise and continuity while increasing our commitment to client service.”
With the combination of Butterfield Fulcrum and FORS, the company will offer comprehensive outsourcing solutions across the alternative investment management, family office and trust industries.
The long-standing relationship with Butterfield will remain intact, providing commercial banking, Forex and custodial services for the group’s clients. “We look forward to continuing a long banking and client relationship with the group,” said Brad Kopp, President and CEO of Butterfield.
Butterfield Fulcrum provides administration, middle office and risk reporting services to hedge funds, fund of funds, managed accounts, private equity and real estate funds. Headquartered in Bermuda, the company services more than 700 funds and has 10 offices in eight countries. Michael Clark was brought aboard as Butterfield Fulcrum’s CEO last year following a management shake-up. Former CEO Akshaya Bhargarva was replaced by Mr. Clark, a former president of Fidelity Investments’ institutional products group, to reflect the firm’s revised focus on the US fund industry
FORS Limited is an independent global organization providing accounting and reporting solutions to Family Offices, Multi-Family Offices, Trust Companies and Private Clients. FORS has offices in Bermuda, New York, Singapore and Toronto. The FORS team is committed to providing an exceptional level of personalized service focusing on meeting the unique demands of our clients, utilizing a leading family office web based technology platform to provide reporting solutions on client assets in excess of $25 billion. Its range of services include: a comprehensive accounting solution for family offices and trustees, preparation of financial statements, customized reporting solutions, investment monitoring, performance reporting and family office administrative services.
BV Investment Partners is one of the oldest and most experienced sector-focused private equity firms in North America. Since its founding in 1983, the firm has invested over $2.6 billion in over 70 companies, actively targeting investments in the information and business services, communications and media industries.
