Intertrust acquires Viteos

Deal valued at $330m
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M&A activity in the fund services space has notched up its latest deal with Intertrust’s $330m purchase of Viteos.

Viteos is a tech-enabled alternative funds industry middle and back office administrator, servicing clients in the hedge, PE, real estate and private debt spheres. It counts 715 staff across its head office in the US and further sites in India.

According to a statement, Viteos generated revenues of $52m for the year ended March 2019, with an EBITDA margin of 36.6%.

Intertrust and Viteos had partnered on technology prior to the acquisition, and following the deal, the combined group will look to build on that.

As well as supporting Intertrust’s technology strategy, the acquisition also provides the firm with an increased US exposure.

The deal marks an exit for former Viteos backers – New York-based private equity firm Public Pension Capital (set up by former senior KKR partners), and FiveW Capital (an affiliate of 22C Capital), a tech focused principal investment firm.

Viteos’s co-founders Shankar Iyer and Chitra Baskar (previously CEO and COO, respectively), have joined Intertrust’s executive committee, and along with management, have reinvested 35% of their post-tax proceeds in Intertrust shares.

Intertrust, which is listed on Euronext, provides administration services to corporate, fund, capital markets and private wealth clients. The company employs 2,500 people across 41 offices and 29 jurisdictions in Europe, the Americas, Asia Pacific and the Middle East.

Last year, Viteos submitted several articles to The Drawdown, discussing automation, the differences between outsourcing in Europe and the US, as well as the impact of the ILPA template on reporting.

Intertrust received the ‘AIFMD Depositary Solution’ award at the 2018 Drawdown Awards, click here to see the follow up coverage.