Fund industry executives Glenn Henderson and Tim Calveley have partnered with BV Investment Partners, a middle market private equity firm, to acquire Butterfield Fulcrum Group (BFG), according to a statement released by the administrator.
The announcement follows speculation earlier this week that the controlling stake of BFG, owned by venture capital firm 3i, was up for sale. At the time 3i declined to comment, but has since confirmed to Global Custodian that it has indeed sold it stake.
Some media reported earlier this week that the 3i stake was being sold to Carlyle Group, which both BFG CEO Mike Clark and a Carlyle spokesman dispelled as false on Monday.
According to the statement, the BFG deal follows the 2009 acquisition of FORS Limited, which provides wealth management services, by Henderson and Calveley. Calveley is the former CFO and chief risk officer of BFG, according to his bio at FORS Limited. Henderson is the former CEO of Fulcrum Group, half of the entity that became Butterfield Fulcrum after the merger of the two administrators in 2008.
BFG and FORS Limited will be integrated into one parent company, headquartered in Bermuda. They will continue to be run by their current management teams, according to the statement. The transition is expected to close this quarter, subject to regulatory and governmental approvals.
“This investment reunites Tim and me with the senior management of Butterfield Fulcrum,” said Henderson, who will take on the role of CEO of the parent company and Butterfield Fulcrum. “Tim and I know the current management team well. We share the same guiding principles and our complete focus will be to continue to deliver quality service to our clients.”
Calveley, who will become COO of the parent company while continuing as CEO of FORS, adds: “Both Butterfield Fulcrum and FORS have excellent management teams and provide great value to our clients through our service offerings and technology platforms. We have structured the group with our clients’ needs in mind. The respective teams of both companies will provide the same level of expertise and continuity while increasing our commitment to client service.”
Update (Feb. 9, 1:42 p.m. EST): A statement released by Butterfield Fulcrum cited in the original version of this story said the current management team of BFG will remain the same. However, a BFG spokeswoman has confirmed to Global Custodian that the current CEO, Mike Clark, has stepped down. Henderson is CEO effective immediately. Clark will remain at the firm until the buyout closes, expected in the coming weeks.
Update (Feb. 9, 4:13 p.m. EST): The Wall Street Journal has been incorrectly reporting that 3i and Carlyle Group have sold their stakes in BFG to Henderson, Calveley and BV Investment Partners. It is actually 3i, which owned the controlling stake, and Butterfield Bank, which owned a minority stake, that have sold their shares of BFG, according to Mark Johnson, vice president of Butterfield Bank.
Carlyle Group, the private equity firm, owns part of Butterfield Bank, according to its current portfolio.
WSJ also reported that Canadian Imperial Bank of Commerce is a part owner of BFG. CIBC is actually part owner of Butterfield Bank, according to Johnson.