Private equity (PE) firm Cinven has acquired a majority stake in specialist fund administrator Alter Domus in one of the largest PE transactions so far this year.
The stake was purchased from fellow PE firm Permira in a deal that values Alter Domus at US$5.3 billion.
According to statement, Cinven will support the long-term strategic growth of Alter Domus, working alongside the fund administrator’s founders and Permira, who will continue to be “significant shareholders”.
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The transaction will also provide capital to fund the Luxembourg-based firm’s next stage of growth.
Founded in 2003, Alter Domus currently has more than $2.5 trillion of alternative assets under administration.
The company grew rapidly after securing investment from Permira in 2017, since when revenue and employee numbers have increased fivefold.
It is not the first time Cinven has targeted the fund administration market. In 2021, it considered a £1.4 billion bid for UK-listed Sanne which was ultimately acquired by Apex Group.
According to Cinven partner Rory Neeson, fund services has been a “priority subsector for Cinven’s business services team for some time due to the attractive business model characteristics and strong growth drivers”.
