3i builds on financial services track record with investment in leading Hedge Fund Administrator, Fulcrum
3i Growth Capital, the world’s leading growth investor, builds upon its strong financial services track record with a $57M investment in Fulcrum Ltd., 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.
Notes to editors
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital, Venture Capital, Infrastructure and Quoted Private Equity (“QPE”) and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.
3i Growth Capital is the world’s largest growth capital fund investing over €1bn every year in businesses across Europe, Asia and the US. We provide financial and strategic support to established businesses with the potential for outstanding value growth. We invest between €10m - €250m to help businesses achieve their growth ambitions, restructure shareholdings, release equity or change the balance of equity to debt. Once we have invested, we are committed to working in partnership with majority shareholders.
Recent Growth Capital investments include KNEIP, €37m, Luxembourg; Delta Hydrocarbons, €185m, Benelux; UFO Moviez, India, €17m; Electrawinds, Benelux, $40m; ACR, Singapore, $200m; Navayuga Engineering, India, $45m and Giraffe, UK, $20m. Recent realisations include SeLoger.com, France, $455m; Alimak Hek, Sweden, $310m and Salamander Energy, UK, €307m.
Established in Bermuda in 1995, Fulcrum Limited is a leading global fund administrator for the hedge fund and alternative investment management industry. Led by experienced professionals, Fulcrum is committed to quality information, technology, and processes. Since Fulcrum’s inception, we have invested in the creation of technology designed specifically to satisfy the demands placed on a fund administrator by hedge fund managers and investors. Continuous development of our proprietary software maintains our position as a global leader in the automation of fund administration processes. Fulcrum has offices in New York, London, Bermuda, Canada, the Cayman Islands, and India. For more information please visit www.fulcrumlimited.com
For further information please contact:
Kathryn van der Kroft
tel. +44 207 975 3021
This transaction involved a recommendation of 3i Corporation, a US wholly owned subsidiary of 3i Group.