Fulcrum Group, a leading global administrator for hedge funds and the
alternative asset management industry, backed by global private equity firm, 3i,
and Butterfield Fund Services (BFS), a top-twenty provider of administration
services for investment and pension funds and part of The Bank of N. T.
Butterfield & Son Limited (Butterfield), today announced, subject to regulatory
and governmental approvals, an agreement to merge the two businesses to create
Butterfield Fulcrum Group (BFG).
Headquartered in Bermuda, BFG will have approximately 400 employees in 10
locations across 9 countries. The firm will have close to $100 billion in assets
under administration from nearly 1,000 hedge funds, fund of funds, private
equity and institutional investment management clients. BFG is expected to
rank amongst the top 10 independent alternative asset fund administration
companies in the world.
Butterfield will retain a substantial equity stake and 3i, an existing
shareholder in Fulcrum Group, will own a majority interest in Butterfield
“This is an enormous win-win for both companies that will leverage sales and
operational capabilities of Fulcrum Group, and the tremendous customer
relationships and global reputation of Butterfield Bank Group.” said Akshaya
Bhargava, Chief Executive Officer of Fulcrum Group. He added, “Our vision
is to create the best fund administration company in the world.”
Alan Thompson, President and Chief Executive Officer of Butterfield, echoed
Mr. Bhargava’s sentiments, saying “We believe that the merger of these two
highly successful businesses will result in significant business growth, more
services for fund administration customers and career opportunities for
employees. In BFG, Butterfield and Fulcrum are creating a company that will have
a powerful presence in fund administration globally.”
Mr. Bhargava will become the Chief Executive Officer of BFG and Jill
Considine, current Chairman of the Fulcrum Group, will be the Chairman of the
BFG Board. Mr. Thompson and Graham Brooks, Executive Vice President,
International at Butterfield will also join the BFG Board, along with other
representatives from Fulcrum and 3i.
“This merger brings together two highly complementary fund administrators to
offer a full-service platform of significant scale that has a business model and
operational structure to achieve industry leadership,” said Ms. Considine. “BFG
will be able to leverage the market reputation of one of the world’s premier
banks, a very efficient operating platform and a highly talented and motivated
Both companies share common corporate values and bring significant strengths
to BFG, in addition to sharing a highly customer centric and a high touch
personalised service approach. BFG’s global operations model and use of many
industry best practices is expected to significantly enhance the company’s
ability to meet increasingly complex demands from its customers.
Commenting on the synergies to be realised through the formation of BFG, Mr.
Brooks said, “In Fulcrum’s management team, we have found a like-minded group of
fund administration professionals who share our focus on customer service and a
desire to be among the top global providers of services to alternative
investment strategies. We are excited about the growth prospects of BFG.”
Representatives of both Fulcrum and Butterfield noted that ensuring seamless
delivery of client services during the integration is a top priority for BFG.
“Clients will continue to receive the same high levels of service and from the
same relationship centres while the two companies are being integrated,” said
Mr. Bhargava. “We expect integration to be completely seamless from a client
point of view.”
Whitney Bower, 3i Partner, added of the merger "We are proud to have been a
part of Fulcrum's growth and believe that Butterfield Fulcrum Group will be a
major force in the global fund administration industry. Our industry knowledge
and strong global network have enabled us to support Fulcrum's international
expansion, particularly in Europe and India, and we very much look forward to
accelerating this growth through the partnership which this merger of Fulcrum
and Butterfield brings. The merger of Fulcrum and Butterfield is also a
testimony of 3i's partnership style focused on driving growth."
Merrill Lynch acted as a third-party adviser to Fulcrum Group on the
agreement, while UBS Investment Bank advised Butterfield.
Tel: (345) 949-7055