Emerging Technology Insider
Alter Domus focuses on US expansion and purchases Investors Economic Assurance for its technology
Alter Domus Continues Rapid US Expansion, Strengthens Technology Offering with Acquisition of New York-Based IEA
Alter Domus continues to broaden its already comprehensive range of technology-driven solutions with Investors Economic Assurance (IEA)
The transaction strengthens Alter Domus’ footprint in Manhattan, adding 22 specialists in alternative investment asset servicing and fund administration and more than $54 Bn of assets under administration
Third acquisition in North America for Alter Domus in the last 6 months, in addition to UK-based Technology firm Credit-Vision in late 2020
Alter Domus reaffirms its position as a top three largest independent private asset servicer for US private market investors, with more than 900 professionals across 8 offices in North America
Alter Domus, a fully integrated provider of fund administration, debt capital markets and corporate services backed by the Permira funds, today announced the acquisition of Investors Economic Assurance (IEA), a global leading provider of technology solutions and services to alternative investment managers.
The Manhattan-based firm specializes in capital administration solutions including Limited Partners’ waterfall calculations and General Partners’ carried-interest allocations.
This strategic acquisition represents another milestone in the firm’s growth strategy focused on providing high-quality, vertically integrated solutions to the most demanding private equity, venture capital, real estate, and credit investors. IEA’s proprietary technology platforms, CapAssure and CapAdministration, will complement Alter Domus’ technology stack leveraging industry-leading in-house solutions like CorPro, Agency360, Mailroom and Virtual Back Office, and best-in-class third-party information processing engines like Investran, eFront, Allvue, and Yardi.
IEA’s proprietary technology platforms will offer benefits to all Alter Domus’ clients and significant revenue synergy potential, allowing Alter Domus to offer IEA’s tech-enabled services to the combined global client base. IEA also contributes to strengthening Alter Domus’ Manhattan office and coast-to-coast footprint.
Technology is the driving force behind the fund administration industry’s ability to innovate and enhance client service. With a team of more than 2,500 fund administration and accounting experts and more than 70 software development professionals, Alter Domus leads through technology-driven platforms that can be customized to offer bespoke solutions for private market investors. The firm is also increasingly using artificial intelligence and robotic process automation to standardize workflows, provide real-time reporting, and enable better investment decisions.
Alter Domus administers over $1 trillion assets globally and generates close to 40 percent of its revenues from the fast-growing US market. The firm ranks top three largest independent private asset servicers in North America, employing over 900 skilled professionals across offices in Chicago (IL), Darien (CT), Boston (MA), New York (NY), Indianapolis (IN), Brea (CA), Salt Lake City, and Ogden (UT).
Alter Domus is backed by global investment firm Permira. In December 2020, Alter Domus announced the acquisition of UK-based technology platform Credit-Vision Limited, a web-based front and middle office technology platform providing portfolio management and financial analysis to private debt investors and debt capital markets participants. In the same month, Alter Domus also acquired IPS Fund Services LLC, a Boston-Based fund administrator serving private equity and venture capital funds. In February 2021, Alter Domus acquired Strata Fund Solutions, a leading fund administrator serving US private equity and venture capital funds. Expanding its global capabilities, Alter Domus last week launched an Alternative Investment Fund Manager (AIFM) and specialized depositary services in Ireland, following the acquisition of Beechbrook Capital’s Irish AIFM.
Founded in 2000, IEA is the global leader in providing alternative investment managers with reliable technology solutions for complex capital administration issues including LP waterfalls, GP carried interest allocations and forecasting. Gary Shelto, IEA’s founder, and the IEA team will report to Paul Woods, Regional Executive North America of Alter Domus.
Alter Domus has been supported in this transaction by Clifford Chance as legal advisor, by Crosslake Technologies as technology advisor and by PricewaterhouseCoopers on the financial and tax due diligence. Newbold Partners LLC served as exclusive financial advisor and Ackerman LLP as legal advisor to IEA on its sale to Alter Domus.
Doug Hart, Group CEO at Alter Domus, said: “North America continues to be one of the strongest growth markets for Alter Domus. Our unique heritage as a Luxembourg-based fund administrator with more than 50 percent of clients in the US has always been a source of strength for our global client service capabilities. We are pleased to bring on the IEA team and the incredible technology platform they have built and mastered over the years in our third US acquisition in six months. With Gary and his team, we will continue to scale our offering for clients in North America and beyond.”
Paul Woods, Regional Executive North America at Alter Domus, said: “Technology lies at the heart of our solutions for clients, and with investors’ growing need for transparency, continued technological innovation is more important than ever. We see great synergy potential, allowing us to offer IEA’s tech-enabled services to our global client base. IEA shares Alter Domus’ vision and have dedicated significant effort and expertise to build an integrated fund servicing platform combining complex data processing capabilities and operational seamlessness. Our client-focused approach to developing advanced technology platforms will ensure investment managers and asset owners can experience a fully integrated fund services offering.”
Gary Shelto, CEO of IEA, said: “Alter Domus Group is a fast-growing, ambitious fund administrator in the global alternative investments industry. We are excited to join forces with its highly entrepreneurial team of technology and fund experts to build a combined technology and services stack that adds value to managers across multiple asset classes and regions. We also look forward to working alongside Alter Domus on integrating our CapAssure and CapAdministration platforms into Alter Domus’ comprehensive range of services and solutions, and further developing them. Lastly, Alter Domus, like IEA, has a strong focus on customer service and delivery. Our clients can continue to expect the same great service they have been accustomed to with the additional benefits that come along with the Alter Domus platform.”
About Investors Economic Assurance Based in New York, Investors Economic Assurance was founded in 2000 by Gary Shelto to provide capital administration solutions to alternative investment General Partners (GPs) and Limited Partners (LPs), including LPs’ waterfall calculations and GPs’ carried-interest allocation and forecasting, through a best-in-class proprietary technology. IEA services today more than $54bn of assets under administration. IEA’s service offer is centred on 2 tech-based solutions:
CapAssure: a fully integrated platform (SaaS) calculating allocations of investment distributions, allocations of investment company P&Ls and clawback accruals, fully customisable by IEA’s clients, and
CapAdministration: a fully customizable, SOC-1 compliant platform combining the first solution with IEA’s accounting and administration capabilities to provide a turn-key solution to meet clients’ capital accounting needs.
IEA currently employs 22 FTEs with a strong knowledge of all aspects of fund administration and specifically an expertise in capital administration services for alternative investment managers.
For more information, please visit: www.iea.us.com
About Alter Domus Alter Domus is a leading provider of fund administration, debt capital markets and corporate services for the alternative investment industry. Through vertical integration, dedicated teams provide support and bespoke solutions across entire value chains. By tapping into a talent pool of more than 3,000 employees across 36 offices in 20 jurisdictions, our expertise and cutting-edge technology combine to put clients ahead of the game.
With an established professional focus on private equity, venture capital, real estate, infrastructure, and credit sectors, we offer fund administration, debt capital markets services, corporate services, depositary services, transfer pricing, domiciliation and management company services. Our specific experience in the debt capital markets sector allows us to provide specialist solutions such as loan administration, agency services, trade settlement and CLO manager services.
Alter Domus proudly serves 16 of the 20 largest private equity houses, 17 of the 20 largest real estate firms, and 17 of the 20 largest private debt managers in the world.
For more information, please visit: www.alterdomus.com