An investor group including the Smeets Family Trust has acquired a controlling interest in Citco from the Sandoz Family Foundation.
The terms of the transaction have not been disclosed, but the Sandoz Family Foundation, which had made a substantial equity investment in Citco in 1995, will retain a minority ownership position and a seat on the Citco Board.
Founded over 60 years ago, Citco Group companies today represent the largest global service provider to hedge funds, administering over USD 250 billion in assets from 36 offices around the world. Citco Group companies also serve as custodians for over USD 140 billion in assets of hedge funds of funds and financial institutions.
The Citco Group companies also provide the highest quality corporate and private client fiduciary services to multinational companies, financial institutions and their professional advisors. Christopher Smeets, CEO, and Citco's current management team will continue to operate the business.
"We are very pleased that the Citco Group of companies will remain an independent organization, well positioned to provide specialized financial services to our hedge fund and other clients worldwide," said Smeets. "This new investment will ensure the continuity and future growth of our business serving the needs of sophisticated investors on a global basis."
Pierre Landolt, Chairman of the Sandoz Family Foundation, said, "Citco is a superb franchise that will continue to benefit from its unique market position as an independent firm. We look forward to participating in the continued success of the business."
Silverpoint Capital LP led the debt financing for the transaction, Morgan Stanley served as financial advisor to the Smeets Family Trust and Goldman Sachs International served as financial advisor to the Sandoz Family Foundation.
Background notes: The Citco Group companies provide corporate/fiduciary, fund administration, brokerage, banking and data processing services. Companies that comprise the Citco Group collectively have over 2,000 employees serving clients from offices in Europe, North America, Australasia, and the Caribbean.