Deutsche Bank sells corporate services business to Hong Kong’s Vistra

Vistra Group, the acquisitive, Hong Kong-based corporate services, trust, fiduciary and fund administration services provider, continues its aggressive global expansion with the acquisition of the corporate services business of Deutsche Bank’s global transaction banking division.

In a statement, Vistra said that the business would focus on management and administration of special purpose vehicles (SPVs) and asset holding companies to banks, non-bank financial institutions and corporates, and that it would specialise in a rane of core products and sectors.

These, the group listed, comprised collateralised loan obligations, collateralised debt obligations, securitisations and mortgage-backed securities.

The deal will close, the group said, in the first part of 2018 and represents a significant step on its “growth trajectory”.

The newly acquired business will give Vistra footholds in new markets as it operates in the UK, Ireland, Luxembourg, the Netherlands, Jersey, Mauritius, Cayman Islands and the US.

As reported by International Investment, last month Vistra reinforced its Middle East presence with the acquisition of a Dubai-based entity, Total Solutions Middle East Ltd (TSME).

At that time, Arjan Schaapman, group managing director of Vistra’s corporate & private clients operation gave an insight into the group’s philosophy and strategy for growth, saying, “Growing corporate and private wealth [in a region] brings with it an increased need for wealth structuring among HNWIs, and therefore [a growing] demand for corporate services” of the kind Vistra offers.

Commenting on this latest acquisition just three weeks later, Vistra’s group managing director of alternative investments division Onno Bouwmeister (pictured left) said the acquisition was important strategically because it broadens Vistra’s presence in seven of its existing locations across Europe, the Cayman Islands and Mauritius.

“It gives us presence in Ireland, a key strategic jurisdiction particularly in light of the upcoming ‘Brexit’ process,” he said, “and additional capability in Mauritius where the bulk of the back-office administrative activity is carried out to high quality standards.”

Signalling Deutsche Bank’s intention to continue working with the business once Vistra takes over, Deutsche Bank’s head of trust and agency services, Global Transaction Banking, Jose Sicilia said that the aim had been to find a partner that would “continue to deliver the highest quality services to our corporate services clients as well as a dedicated corporate service provider for our staff”.

This would, he said, allow Deutsche Bank to focus on its core securities service business.

The business employs 139 staff globally. Vistra did not guarantee to retain all 139, saying only that all staff “will be given the opportunity to join the combined operation”.

As with Vistra’s acquisition of TSME in Dubai, terms of the agreement are not being disclosed.

 

ABOUT THE AUTHOR
Eugene Costello
Eugene Costello has been a journalist for some 20 years, and has written for a wide variety of UK and international newspapers and magazines.

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