Investor services group IQ-EQ is to acquire Davy Global Fund Management (DGFM), part of Davy Group, one of Ireland's largest domestic financial services businesses servicing a domestic and international client base from its offices in Dublin, London and Luxembourg.
The strategic combination of private equity firm Astorg-backed IQ-EQ and DGFM, announced today (22 July), will create what they describe as "an established full service funds business in Ireland with a proven track record and prominent market position".
The transaction, which is subject to regulatory approval, is expected to complete by the end of 2021 following which DGFM will rebrand to IQ-EQ.
This acquisition represents the natural next step for our business in Ireland and the perfect opportunity to firmly establish ourselves as a player of significance in our sector."
Formed in 2014 DGFM has grown largely organically and today employs 83 people - 68 based in Dublin, 13 in Luxembourg, one in London and one in Chicago. The firm is a market leader in Real Estate ManCo services in Ireland with a leading position in the Private Equity space.
The newly combined Irish business, which will offer Corporate Administration, Fund Administration, Fund Management and Portfolio Management services, will comprise 110 employees located in Dublin and Shannon.
Following receipt of regulatory approval, Tom Berrigan, DGFM chief executive and Paul Giblin, DGFM managing director will join the IQ-EQ UK & Ireland senior leadership team.
DGFM comprises two business elements:
- A Super ManCo with Irish and Luxembourg operations
- A boutique fund management business focussed on ESG
Group executive chairman Serge Krancenblum said: "Together IQ-EQ and Davy Global Fund Management represent a compelling combination further enhancing our position as a leading global investor services company with scale in all key jurisdictions making IQ-EQ ideally placed to capture the significant market opportunities available to us by cross selling and up selling to our combined customer base not just in Ireland but globally.
This acquisition represents the natural next step for our business in Ireland and the perfect opportunity to firmly establish ourselves as a player of significance in our sector. Welcome DGFM to IQ-EQ!"
Tom Berrigan, chief executive of Davy Global Fund Management, added: "All of us at DGFM are delighted to be joining forces with IQ-EQ with whom we share similar attitudes in terms of the importance we place on our people and the service levels experienced by our clients.
Being part of a truly global service provider will both enhance our client service offering while affording our people the opportunity to continue to develop their careers and broader expertise."
John Legrand, IQ-EQ managing director, UK & Ireland further said:
"What first struck us about DGFM was just how culturally similar both of our businesses were. So, when this opportunity presented itself, we recognised it not only as a commercial great fit for our business but a cultural one too.
For a people business like IQ-EQ this helped seal the deal! At IQ-EQ, we share DGFM's passion and drive and believe that together we can be a formidable force in the marketplace. This is the first step of the journey and I am very excited to be taking it with them."
Astorg is a global private equity firm with over €11bn of assets under management, with offices in London, Paris, New York, Frankfurt, Milan and Luxembourg.
IQ-EQ employs a global workforce of 3,400+ people located in 23 jurisdictions and has assets under administration (AUA) exceeding US$500 billion. IQ-EQ works with six of the top 10 global private equity firms.
In a separate deal, also announced today, the Bank of ireland is to acquire J&E Davy, Ireland's leading provider of wealth management and capital markets services, for an enterprise value of €440m.
Founded in 1926, Davy manages in excess of €16bn of client assets and employs over 800 people, including 83 employed by DGFM. The company has offices in Dublin, Cork, Galway, Belfast, and London, providing wealth management, capital markets advisory services, and DGFM services to its clients.