3i makes $57m investment in hedge fund administrator Fulcrum
02 July 2007 | 807 views | 0
3i Growth Capital, the world's leading growth investor, builds upon its strong financial services track record with a $57M investment in Fulcrum, a leading global hedge fund administrator ("HFA").
3i's investment will fund the growth of the business as well as provide liquidity to shareholders, allowing Fulcrum to retain its status as an independent administrator while continuing to build the gold standard fund administration platform for the hedge fund industry. 3i is well placed to partner with Fulcrum at this stage of the firm's growth due to its financial services sector expertise and its international reach.
The funds will help Fulcrum continue to grow revenues and profits through an organic increase in funds under administration, new middle-office service offerings, and international expansion into Europe and Asia. Fulcrum is currently recognized for its market leading client service, proprietary technology, and ability to handle complex products and structures. The investment from 3i will support Fulcrum's controlled expansion enabling the firm to develop a scalable and differentiated fund administration model whilst strategically growing employee numbers and expanding its operations globally.
"3i's global network, corporate connections, and extensive experience in growing businesses will help Fulcrum achieve its potential," said Glenn Henderson, Fulcrum's current CEO. Following the transaction, Mr. Henderson will become Chief Sales Officer in an expanded Business Development/Sales role. "Fulcrum will retain its independence, delivery model, technology platforms, and dedicated client team approach, scaling these attributes significantly to continue providing a best-in-class hedge fund administration service."
"Our heritage is in growing significant international businesses, so we are thrilled to have the opportunity to build a differentiated company in a large and growing market, with strong management leadership," said Whitney Bower, Partner, 3i Growth Capital. "Fulcrum, in particular, has an attractive business model, a superior-quality proprietary technology platform, the ability to support hedge funds' complex strategies, and personnel in place to advance operations."
Akshaya Bhargava of 3i will become Fulcrum's chief executive officer. Mr. Bhargava has extensive experience in financial services and has a strong track record for growing companies in the business process outsourcing (BPO) industry. Mr. Bhargava, who has been working with 3i for a year, during which time he identified and led two BPO investments, commented: "Fulcrum is an established outsourced service provider of fund administration and middle office services and has built high quality delivery capacity for new business with production offices in Canada and India. I feel that Fulcrum is one of the most exciting companies on the market and 3i will be instrumental in leveraging this investment by drawing on our direct management expertise and global footprint to augment and expand Fulcrum's service offering in Europe and Asia."
Prior to joining 3i, Mr. Bhargava was the CEO of Progeon, India's seventh largest BPO services company (a subsidiary of Infosys), which he grew from start-up to a company with $86 million in revenues, over 7,000 employees and 22 Fortune 500 customers in less than four years. Previously, Akshaya spent 22 years in a variety of leadership roles at Citibank locations in India, the Czech Republic, and the U.K.
Fulcrum Limited is a medium size global fund administrator that combines leading edge technology with hands-on industry expertise to deliver a fund administration service defined by client service, rich functionality, robust technology, and automation to managers and investors. Fulcrum's model is founded in meeting the needs of the hedge fund managers and investors with a centralized approach to fund administration activities for the delivery of timely standard and complex net asset valuations and other fund administration services.
3i brings a strong track record in financial services knowledge and outsourcing expertise gained from its previous successful investments in KNEIP, Travelex, Asia Capital Re, Bouncopy and Williams Lea.