ISIS Backs Buyout of AITCL
ISIS Equity Partners (‘ISIS') has completed the equity financing of Anglo Irish Trust Company Limited ("AITCL") in what is one of the Isle of Man's largest ever management buyouts.
ISIS invested £13 million from ISIS III LP for a significant minority stake in a deal which valued AITCL at £33 million. The management team, led by managing director Sheila Dean, also invested and hold the balance of the equity.
AITCL, one of the island's leading providers of offshore trust and company administration services to high net worth individuals, was acquired from Anglo Irish Bank PLC, Ireland's third largest bank. The business was founded in 1978 and had been under the ownership of Anglo Irish since its acquisition from accountancy firm Ernst & Young in 2002. Following a strategic review Anglo Irish decided that the potential for the business was best maximised outside of its existing banking structure.
A management buyout was seen as an attractive option as it provided the continuity and stability that best served the interests of existing clients and the future development of the business, retaining the knowledge and market experience of the original Ernst & Young team as well as that developed in the four years under the ownership of Anglo Irish.
ISIS had been actively seeking an investment in the trust and corporate services sector and was attracted to AITCL by its customer focus, growth potential and strong management team in a jurisdiction with an unrivalled reputation for integrity of service provision.
The management team was advised by Deloitte Corporate Finance in London and Sheila Dean, managing director of AITCL, said: "We are delighted to have selected ISIS as our preferred partner for the future development of the business. Their market knowledge and enthusiasm was immediately evident which allowed us to complete the transaction within five weeks of appointing them, a considerable achievement".
Shani Zindel, who led the deal for ISIS, commented: "We were very impressed with the dynamic management team and the quality of service and entrepreneurial culture that runs through the business. The growing market, product development track record and high quality of earnings make AITCL an attractive investment opportunity".
AITCL has confirmed that it is very much "business as usual" and that there will be no changes to daily operations, staffing or the existing management structure although a new name for the business will be announced in due course.
ISIS' investment was arranged by Shani Zindel, Simon Ward, Daniel Smith and Neil Bennett. Shani Zindel and Wol Kolade will represent ISIS on the board. Debt funding was provided by Royal Bank of Scotland Corporate & Structured Finance, lead by Paul Wood and Anthony Donohue.
Published: 09 January, 2007
