Cordium, the global compliance consulting and software provider to the financial services industry, has acquired Zodiac Advisory Services ('Zodiac'), a leading provider of compliance, risk, accounting and governance services for the investment management industry in Malta.
The acquisition is Cordium's third in as many months, following the purchases of The Sigma Partnership and HedgeStart in December 2013 and January 2014 respectively. With this move, Cordium's management continues its structured expansion and integration plan by acquiring specialist companies globally while simultaneously investing in organic growth. The deal gives Cordium a presence in Malta, which is rapidly becoming a prime jurisdiction for asset managers across the globe for setting up both funds and fund management companies.
An EU member since 2004, Malta is an attractive base from a cost and tax efficiency point of view. It provides an English speaking business community with strong ties to mainland Europe while boasting a globally recognised regulatory regime. For Cordium, a Maltese subsidiary will enable its UK based regulatory hosting and risk management subsidiary, Mirabella Financial Services, to offer hosted AIFM solutions to non-EU firms.
Founded in 2009 by CEO Adam de Domenico, who has been working within the asset management sector in Malta since 2004, Zodiac supports fund management firms as well as fund entities. Staff and management at Zodiac will remain with the company in their current roles to accelerate its growth under the Cordium banner, with de Domenico continuing in his role as CEO, supported by David Galea Souchet as COO.
Michel van Leeuwen, group CEO of Cordium, said: "Zodiac enjoys a sterling reputation in its local market - adding its team, services, and expertise to our own can only strengthen and deepen our global offering. It is also a perfect match for us in terms of establishing a Maltese presence. While the impact of AIFMD has been much-discussed within Europe, it has understandably drawn less attention elsewhere. Yet the regulation carries significant consequences for non-European alternative investment firms looking to access the lucrative European market. A Maltese base will enable us to offer aa suitable solution - AIFM-hosting - to this conundrum facing non-EU firms."
Adam de Domenico of Zodiac, added: "We are entering a new era of global financial services regulation where obligations are both more numerous and more cross-border in nature. As such, being a part of an established, global provider of such services, with international expertise and offices across the world, will allow us to better serve our clients. We are confident that the high standards our clients have come to expect will be maintained following the deal. In fact our existing clients will experience no change whatsoever save for the additional benefits of Cordium's deeper resources."