Administrator Butterfield Fulcrum Sold To Private Equity Firm, Ex-Execs.

Feb 9 2011 | 11:05am ET

A private equity firm has bought hedge fund administrator Butterfield Fulcrum Group, but it wasn't the Carlyle Group.

Instead Carlyle, which owns a stake in BFG, is one of a group of owners, including 3i Group, selling to a pair of former BFG executives and BV Investment Partners. Carlyle had been rumored to be close to a deal for the firm, an assertion quickly denied by BFG.

The new owners, Glenn Henderson and Tim Calveley, plan to house BFG and their existing family office administrative service firm, FORS Ltd., under a single parent company while leaving the two units to operate independently. The deal is expected to close in the first quarter; terms were not disclosed.

Henderson and Calveley are intimately familiar with BFG, having helped create the firm two-and-a-half years ago. Henderson was CEO of Fulcrum Group, which merged with Butterfield Fund Services in the summer of 2008. Calveley served as CFO and chief risk officer, first for Fulcrum and then for BFG. Both left later that year.

Henderson will now serve as CEO of both the Bermuda-based parent company and of BFG, which has some US$70 billion in assets under administration. Calveley will be chief operating officer of the parent company.

Henderson said that, now that he is in charge, BFG will not be looking to grow through mergers or acquisitions.

"The absolute focus of Butterfield Fulcrum will be on being a full-service front-, middle- and back-office service provider to our existing clients, helping them with rolling out new funds and new products," he said.

Henderson, Calveley and BVIP, along with Butterfield Bank and Canadian Imperial Bank of Commerce, beat out a handful of private equity funds and fund administrators to buy BFG.


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