- Transaction values Alter Domus at an Enterprise Value of €4.9bn
- Alter Domus has grown Revenues and EBITDA more than 5 times since the Permira Funds invested in 2017
- Permira Funds to retain a significant investment in the company, alongside its founders, to support the next phase of growth
London, 4th March 2024 – Permira, the global private equity firm, is pleased to announce that funds advised by Permira have agreed the partial monetisation of their investment in Alter Domus (“the Company” or “the Group”), a leading provider of tech-enabled fund administration, private debt, and corporate services for the alternative investment industry. All existing shareholders, including the Company’s founders and the Permira Funds, will sell approximately half of their shares to Cinven as a new shareholder in the Company, and retain a significant investment in Alter Domus going forward. The transaction values the Group at an Enterprise Value of €4.9bn.
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 Company 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 the Permira Funds partnered with Alter Domus in 2017, the Company has experienced a period of exceptional growth at scale, with revenues, EBITDA and employee numbers all increasing by over 5x. From a Luxembourg-headquartered European market leader in 2017, the Company has, with the support of the Permira Funds, successfully entered the US market through a number of transformational acquisitions, including Cortland and Strata, and built a US business which represents the largest region for the Group today. Alter Domus is now one of the few truly global alternative asset servicing businesses that can support its clients across multiple geographies, asset classes and service capabilities.
The shareholders have also supported a significant multi-year investment in the tech-enablement of the Company – investing in best-of-breed third-party platforms, workflow automation and building a leading data and analytics product capability to better serve the increasingly complex needs of its global client base.
Philip Muelder, Partner and Global Head of Services at Permira, said: “Our Services strategy is centered around partnering with ambitious management teams to accelerate growth and help transform businesses into digitally enabled, global market leaders, and our journey to date with Alter Domus is a perfect example of this. We are delighted to have agreed a transaction that both enables us to return significant capital to our investors and to remain invested in an outstanding business going forward. We would like to thank René Beltjens, Doug Hart and the entire Alter Domus team for their hard work and passion that has allowed our partnership so far to be so successful, and we are pleased to welcome Cinven as a new shareholder for this exciting next phase of growth.”
Chris Pell, Principal at Permira, added: “When we backed Alter Domus in 2017, we pledged to support them with international expansion and industry consolidation, so I am pleased that we have been able to deliver on this front – supporting a European market leader to enter and build a leading US franchise, including through a number of landmark acquisitions. The company is now well positioned as a global leader to enter its next phase of growth with the support of an aligned set of shareholders, and we’re looking forward to working closely with Cinven, the Founders and management to continue capitalising on the growth opportunity ahead.”
Doug Hart, Chief Executive Officer at Alter Domus, said: “Permira’s contribution to the global growth of Alter Domus since 2017 cannot be understated and I would like to thank the Permira team for all their support. I am delighted that, together with Cinven, we will continue to work together as Alter Domus looks to deliver the next phase of its long-term strategic vision. We look forward to further accelerating our international growth and delivering innovative new services to our clients.”
René Beltjens, Co-Founder and Chairman of the Board at Alter Domus, commented: “When we chose Permira in 2017, we sought a partner capable of supporting Alter Domus on its transformation from a leading European alternative assets service provider to a global leader. Our key objectives included entering North America, accelerating growth through strategic M&A and advancing our tech-enablement initiatives. The outstanding results over the last seven years stand as a testament to the strength and success of that close partnership. As we embark on the next phase of growth, we look forward to working closely with both the Cinven and Permira teams.”
The transaction is subject to regulatory approvals and other customary closing conditions.
Permira was advised by Goldman Sachs International (M&A), Clifford Chance and Skadden (Legal), Bain & Company (Commercial), PWC (Financial), EY (Tax) and Alter Domus was advised by Goldman Sachs International and Raymond James (M&A), Oliver Wyman (Commercial), EY (Financial & Tax) and Clifford Chance (Legal).
