Private equity fund Estancia Capital Partners has acquired a minority interest in Equinoxe Alternative Investment Services, joining XL Group as a strategic investor in the firm.
Terms of the transaction were not disclosed.
Equinoxe is a boutique full-service alternative investment fund administration company founded by a group of hedge fund administration professionals, with over USD12.5bn of assets under administration (AUA) currently from over 150 alternative investment funds.
"Equinoxe is a premier service provider within the global alternative investment fund administration space led by a proven management team that has previously successfully built two similar service businesses," says Danny Kang, a partner at Estancia. "We look forward to working closely with the team to source acquisition opportunities, support new product solutions and execute on its strategic corporate development plan leveraging Estancia's deep network of relationships including alternative managers, lawyers, accountants and industry consultants."
Equinoxe will reinvest the proceeds of the investment into the firm to i) launch new client coverage offices including Singapore and Malta, ii) expand the features of its solutions for hedge funds, private equity funds and insurance clients, and iii) hire additional client service and operational personnel around the globe. Equinoxe will continue to operate independently and under the leadership of the existing management team that owns a meaningful equity stake in the business.
"Our firm is on a rapid growth trajectory and we continue to invest in our people, our products and technology, and geographic footprint to remain an industry leader," says Stephen Castree, Equinoxe's founder and chief executive. "We are delighted to partner with Estancia. The principals share our vision and fully support our commitment to further enhancing the client experience and continuing our growth plan through reinvestment. We also believe Estancia can provide advice regarding strategic acquisition opportunities as our industry continues to experience consolidation."
Barrington Partners of Boston assisted Estancia in the due diligence process.