Compliance and regulatory services provider Cordium has acquired HedgeStart, a provider of UK tax, accounting and regulatory compliance consulting services to the investment management and securities industries.
The deal marks another chapter in a period of planned expansion for Cordium, following quickly on from the acquisition of The Sigma Partnership in December 2013.
The HedgeStart acquisition allows Cordium to add a corporate and private client tax capability to its wide range of client services. It also expands Cordium’s core compliance specialism and provides a further boost to its regulatory accounting division.
All of HedgeStart’s staff and the majority of its partners will be joining Cordium. HedgeStart’s founder and managing partner, Matthew Wilson, will become an advisory consultant to Cordium.
HedgeStart’s regulatory compliance consultants will join Cordium’s UK compliance consulting team, working under the leadership of director Philip Naughton, while its accounting and tax teams will merge with Cordium’s regulatory accounting division under the leadership of HedgeStart partner Rob Edwards.
Michel van Leeuwen, group CEO of Cordium, says: “The rationale for this move is similar to that behind our recent acquisition of Sigma, and the deal forms part of the same overall strategy. Over the past years, firms have been subjected to an avalanche of regulatory and fiscal obligations globally. We know this will continue. The ever increasing globalisation of the economy only contributes to the complexity. The lines between compliance, regulatory accounting and tax have become blurred. We know from our clients that there is now real demand for holistic advice across these areas from a single, trusted global provider. Acquiring HedgeStart with its well-deserved reputation, and absorbing its expertise, allows Cordium to strengthen its position in that role.”
Wilson says: “We are proud of HedgeStart’s reputation in the market and the high level of client service we have consistently delivered in our 13 plus years. We would not have embarked on this deal without full confidence in Cordium’s ability to continue that legacy uninterrupted. Our clients will now benefit from Cordium’s increased size, global reach and considerable international regulatory expertise. Furthermore, this deal is also a ringing endorsement of the calibre and professionalism of the HedgeStart team, who will now continue the delivery of our existing services under Cordium.”
The deal was funded by Cordium’s private equity sponsor, Sovereign Capital, as part of its long-term strategy to grow the business both organically and through acquisition. Cordium will continue to make further acquisitions in 2014.