IK to sell Vistra to Baring Asia

José Rojo
22 May 2015

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IK Investment Partners has agreed to fully sell its majority stake in Luxembourg-based asset manager Vistra Group to Baring Private Equity Asia.

Information regarding the returns to be reaped by IK has yet to be disclosed, although market sources place it around the 2.7x mark.

The SBO, subject to regulatory approval, will see Vistra's management retain a significant stake in the company.

IK's divestment of Vistra comes almost six years after it invested in the firm in August 2009. The GP invested alongside Dutch firm Reggeborgh Groep to acquire a majority stake in the asset manager, according to unquote" data.

The deal saw the management team reinvest nearly all of their proceeds and retain a substantial shareholding. A vendor loan and a facility supplied by Barclays further supported the transaction, with a portion being refinanced via a dividend recap by IK in May 2013.

According to the GP, Vistra has quadrupled in size and become one of the four main corporate trust service providers worldwide during IK's tenure, with claims of a leading position in the Asian market.

As part of this expansion strategy on the Asian continent, IK carried out more than 20 bolt-on acquisitions including Offshore Incorporations in March 2011, when the Asia-based group saw its subsidiaries Acceptor and Credence Trust merge with Vistra.

In addition, in December 2013 the firm bolted on HVK FOS, the family office services division of Amsterdam-based consultancy firm HVK. The portfolio management deal followed the launch of Vistra's own family office operations.

Aside from Asia, another of Vistra's geographic areas of focus has been CEE, with the acquisition of Warsaw-based management and accounting outsourced service Trinity Corporate Services in November 2014.

Company
A trust, fiduciary and fund administration service provider, Vistra Group was formed in 2006 via the buy-in of the private client business of Chiltern in London and Jersey by the former management team of Fortis Intertrust.

Headquartered in Luxembourg, the business employs a workforce of 1,300 in 46 offices across 35 different countries.

People
Partner Remko Hilhorst led the deal for IK Investment Partners, while Baring Asia was represented by founder and CEO Jean-Eric Salata. Martin Crawford is CEO of Vistra Group.

Advisers
Equity – Goldman Sachs (Corporate finance); Crédit Suisse (Corporate finance); Linklaters (Legal).
Vendor, company – JP Morgan (Corporate finance); Morgan Stanley (Corporate finance); Lazard (Corporate finance); Clifford Chance (Legal).