Baring PE Asia to acquire Orangefield Group

The deal marks Baring PE Asia's second acquisition in the corporate and trust services (CTS) industry. The first was Hong Kong-based Vistra Group, a deal which the GP agreed in May.

Headquartered in the Netherlands, Orangefield Group is a global provider of administrative, fund, corporate and management services to hedge funds, private equity funds and real estate firm. The company has a strong presence in Luxembourg and the Netherlands, which accounted for nearly 50% of the Company's total revenues in 2014. The group currently has 34 full service offices located in 45 countries globally.

"In this fast-consolidating industry, we are delighted to sign our second investment in the sector and look forward to future organic and acquisition-led growth opportunities for both companies," said Jean Eric Salata, founding partner and CEO of Baring PE Asia, in a statement. "Orangefield Group has an impressive growth track record, quality management and excellent employees, proven financial performance and strong operational and compliance frameworks."

He added that Orangefield and Vistra are complementary in terms of the match of skills, service, and geography. Vistra was understood to be Baring PE Asia's largest ever buyout. The size of the deal was not disclosed, but it was previously reported that Vistra's former parent IK Investment Partners was looking to take the business public in Hong Kong at a valuation of around $900 million.

Vistra Group claims to be one of the top four corporate trust services providers globally and the number one in Asia. According to the IK website, the company generates annual sales of EUR244.4 million ($273 million)

Corporate service providers, which typically have high client renewal rates and generate strong cash flows, have proved popular with private equity, particularly as the industry moves towards consolidation.

In 2010, Doughty Hanson bought Equity Trust from Candover Investments for EUR350 million and merged it with TMF, which it had acquired two years earlier. Renamed TMF Group, the company boosted its Asia presence with the purchase of KCS from UCL Asia Partners last year. In 2012, The Blackstone Group acquired Intertrust for a reported EUR675 million and then bolted on ATC Group the following year. The company is said to be eyeing an IPO.

Baring Asia manages funds with more than $9 billion in committed capital. It closed its sixth pan-regional vehicle earlier this year at $3.98 billion.

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