In September 2008, RJD led the £25 million management buyout of Ipes, a leading provider of outsourced fund administration services, from its original founder.
We recognised that the management team, led by Chief Executive Kevin Brennan, had developed an attractive and innovative business with an unparalleled reputation for service and excellent potential for further organic growth in an attractive niche market. Our depth of sector understanding, consistency of approach and track record in generating value in the services sector were important factors in winning the mandate to work with the team. In addition, we were able to differentiate our proposal by offering to underwrite the debt required for the deal at completion, subsequently selling down to Lloyds TSB bank.
Richard Grainger, Ipes
From our perspective, this is the industry award to win given its affiliation with the BVCA and the rigour of the judging process.
Against a backdrop of very challenging debt markets and a resulting lack of liquidity, Ipes received several competing indicative financing offers – a reflection of the robust cashflow and strong reputation of the business. Two months after the buyout in November 2008, a debt refinancing was completed, comprising new senior facilities of £10 million.
Ipes was founded in Guernsey in 1998 with just five employees. Today the business employs 130 staff, managing in excess of $50 billion of assets from four European offices in Guernsey, Jersey, London and Luxembourg. Ipes has over 90 clients and administers 230 funds.
Under RJD’s ownership, Kevin and the management team delivered significant growth, transforming Ipes from an owner managed business to a professional market-leading pan-European operator and increasing assets under management from $36 billion at the time of the original buyout, to over $50 billion today, despite a difficult market backdrop.
RJD and Ipes appointed Richard Grainger, the former Chief Executive of Close Brothers Corporate Finance, as non-executive chairman to support the management team achieving their strategic ambitions.
In 2010, Ipes won the European Venture Capital Journal’s Administrator of the Year Award and the Specialist Professional Services Firm category in the Private Equity Awards – a reflection of Ipes’ dedication to training, professionalism and client service delivery.
In April 2013, RJD agreed to sell Ipes via a secondary buyout to Silverfleet Capital. The transaction, which completed in August 2013, valued Ipes at £50m, giving RJD a return of 3x its original investment. Ipes is the fourth successful realisation from RJD’s second fund, RJD Private Equity Fund II.
To discuss Ipes in more detail, please contact Richard Caston.