Appleby ILS services won’t be affected by fiduciary unit buyout

by Artemis on July 22, 2015

The insurance-linked securities (ILS) and reinsurance market legal, fiduciary and management services offered by Appleby Group will not change in the face of a private equity backed management buyout of its fiduciary unit.

Appleby’s fiduciary business, which includes offshore trust and fund administration services, are being bought out by management backed by private equity investment group Bridgepoint in a $370m deal.

Appleby Group is among the world’s largest providers of offshore legal, fiduciary and administration services and performs extensive work in the insurance-linked securities (ILS) and reinsurance market, which has become a real specialism for the firm.

Appleby legal teams are heavily involved in ILS and catastrophe bond arranging, structuring, issuance, listing and management of the trusts, funds and vehicles that support the insurance-linked asset class.

Despite the management buyout the firm does not expect any impact to its services for these sectors, instead explaining that the buyout will enable the Fiduciary business to grow and develop new products, but that it will remain close to the Appleby Group’s other units when providing services to clients.

Appleby’s Group Managing Partner, Michael O’Connell, explained; “This is an exciting development for Appleby. The transaction will enable two strong businesses to grow and prosper independently, whilst remaining close where it suits the needs of clients.”

Appleby Chairman, Frances Woo, added; “Being able to respond to client needs by investing in the development of products and services for each business is a key part of our thinking here, coupled with providing essential continuity of service. With the existing management team taking the helm of the new fiduciary company this will ensure that existing clients feel it is very much business as usual.”

Both the remaining Appleby business and its legal experts as well as the soon to be independent fiduciary and administration business, intend to reinvest capital resources in order to enhance and grow the range and quality of client solutions.

An Appleby spokesperson told Artemis; “It is very much business as usual across all areas of the business, including the ILS and the capital markets teams. Where it suits the needs of clients, both businesses will remain close so we do not see this transaction as having any impact on our ability to maintain our service levels with existing clients. The deal will allow us to invest in products and services which can only be positive news for both our existing, and our new, clients.”

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