Cinven to buy majority stake in Alter Domus for €4.9bn EV

• Alter’s founders and Permira will sell around half of their shares to Cinven
• Cinven is an international private equity firm
• Permira is a London-based global investment firm

UPDATED. Cinven has agreed to make a majority investment in Alter Domus, a global end-to-end tech-enabled fund administration and corporate service provider. The transaction values Alter Domus at an enterprise value of €4.9 billion.

Alter’s existing shareholders, including the company’s founders and Permira, will sell around half of their shares to Cinven and retain a significant investment in Alter Domus.

Permira will generate a more than seven-times return on its investment, according to people familiar with the matter.

Luxembourg-based Alter Domus has over $2.5 trillion assets under administration (AuA). It has increased revenue by 54 percent and grown AuA by 69 percent since 2021.

Permira first invested in Alter Domus in 2017. Alter Domus saw growth during its ownership with revenues, EBITDA and employee numbers increasing by over 5x. The company entered the US market through a number of acquisitions, including Cortland and Strata.

Cinven’s business services and financial services sector teams worked together in close partnership to acquire Alter Domus.

“Fund services has been a priority subsector for Cinven’s Business Services team for some time due to the attractive business model characteristics and strong growth drivers,” said Rory Neeson, partner and head of Cinven’s Business Services sector team.”

Cinven will support management to accelerate growth across key regions and customer verticals and invest in developing Alter Domus’s tech-enabled and digital offerings to its clients, the release said.

“Alter Domus is well positioned to benefit from the strong growth in the fund services market, underpinned by the structural expansion in private capital markets, greater regulation and further outsourcing,” said Maxim Crewe, partner and head of Cinven’s financial services sector team. “The company is a leading player in the industry with a differentiated service proposition, and we see a compelling opportunity to leverage Cinven’s financial services sector knowledge and global footprint to help the business continue this trajectory.”

The transaction is subject to regulatory approvals and other customary closing conditions.

Cinven is an international private equity firm that invests in business services, consumer, financial services, healthcare, industrials and technology, media and telecommunications. It has offices in London, New York, Frankfurt, Paris, Milan, Madrid, Guernsey and Luxembourg.

Permira is a London-based global investment firm.

Editor’s note: The story was updated to include Permira’s return on its investment.