BOSTON–(BUSINESS WIRE)–Oct. 6, 2003–TA Associates, a leading private equity and buyout firm, today announced that it has purchased a substantial minority interest in GlobeOp Financial Services(GFS). The $82 million investment involved the purchase of shares from the Company and existing shareholders.
GlobeOp Financial Services, with offices in London, New York, India and the Cayman Islands, is a leading provider of automated middle- and back-office support services, fund administration and risk reporting for hedge funds, fund of funds and high net worth family wealth offices. The firm is recognized for its independence, its experienced leadership – drawn from senior levels of international banking and fund management – and for its advanced systems. Spanning three continents and employing the best of Internet technology, GFS gives its clients the flexibility to operate “virtual offices” and manage funds from anywhere in the world.
“We are pleased to be partnering with the highly regarded management team of GlobeOp, the emerging leader in hedge fund administration,” said Brian J. Conway, a Managing Director at TA Associates who will join GFS’s Board of Directors. “The Company has a sound, profitable business model, diversified customer base, and proven technological prowess and industry expertise.”
“As the hedge fund industry continues its significant growth, new funds are increasingly challenged by the cost and complexity of middle- and back-office operations,” said Jonathan W. Meeks, a Vice President at TA who will also join the Company’s Board. “As hedge fund strategies proliferate and demands increase from institutional investors and fund of funds for accurate and timely reporting of valuations, positions and risk, GlobeOp has proven to be the cost-effective, technologically advanced solution for its clients around the world.”
“We welcome TA into GFS as an investor and a trusted advisor,” said Hans Hufschmid, Chairman and Chief Executive Officer. “The firm has a demonstrated expertise in technology and financial services and has earned an impressive reputation for helping profitable companies accelerate growth. Beyond capital, we believe our relationship with TA will provide additional strategic guidance, management expertise and industry connections that will enhance our ability to serve our clients and to continue to build the success and long-term value of GlobeOp Financial Services.”
TA’s prior investments in the financial services and financial technology sectors include Affiliated Managers Group, AIM Management Group (AMESCAP), Clinton Group, Datek Online Holdings (Ameritrade Holding Corporation), Island ECN (Instinet Group Incorporated), Lava Trading and Thomson Advisory Group (PIMCO).
Goodwin Procter LLP served as legal counsel for TA Associates. Weil, Gotshal & Manges LLP served as legal counsel for GlobeOp Financial Services.
GlobeOp Financial Services
GlobeOp Financial Services specializes in turnkey, state-of-the-art middle- and back-office support services and fund administration for hedge funds, fund managers and high net worth family wealth managers. GFS provides independent services essential to the successful operation of private investment entities with activities ranging across a wide spectrum of traded instruments. The firm’s GlobeOp Risk subsidiary provides independent risk reporting and quantification to investors, creditors and managers. Company expertise is drawn from the senior levels of international banking and fund management and encompasses a wide range of relevant experience. Mezzanine Management, an early investor in GFS, has maintained its minority shareholding in the Company. More information about GlobeOp Financial Services can be found at www.globeop.com.
TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced private equity firms. With offices in London, Boston, Menlo Park and Pittsburgh, TA manages over $5 billion in capital and has invested in more than 330 companies. TA Associates provides growth equity capital and management buyout financing primarily for technology, financial services, healthcare-related and consumer businesses. More information about TA Associates can be found at www.ta.com.
Safe harbor statement under the U.S. Private Securities Litigation Reform Act of 1995: Statements made in connection with this release which are not historical fact, such as forward-looking statements concerning future financial performance and growth, involve risk and uncertainties. Such statements are subject to various factors that could cause actual results to differ materially from those set forth in the forward-looking statements. Any forward-looking statements represent the best judgment of TA Associates and/or GlobeOp Financial Services as of the date of this release. TA Associates and GlobeOp Financial Services each disclaim any intent or obligation to update any forward-looking statements.
