TPG To Buy Administrator GlobeOp

Feb 1 2012 | 1:20pm ET

TPG Capital has agreed to buy hedge fund administrator GlobeOp Financial Services.

The private equity giant will pay £508 million (US$800 million) for the London-based firm. The per-share offer of £4.35 is a 50% premium to GlobeOp's share price prior to the firm's announcement that it was in talks to sell itself.

GlobeOp's senior management team, including CEO Hans Hufschmid, will continue to run the firm and has agreed to pour 70% of its proceeds from the sale back into GlobeOp. For its part, TPG plans to finance GlobeOp's expansion, including the establishment or acquisition of other hedge fund servicing businesses.

"GlobeOp is a strong global financial services company with a high-quality offering and a robust business model, which we plan to invest in and grow," TPG's Bryan Taylor said.

TPG beat out fellow private equity firm Advent International for GlobeOp, whose shareholders must approve the deal. Investors representing about 44% of GlobeOp's shares outstanding, including major shareholders Aberforth Partners and Standard Life Investments, have already agreed to do so.

GlobeOp put itself up for sale after concluding that "the company's share price significantly undervalues its future prospects," it said last month.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note