0299 AUR En Voyage Issue #18 Flickbook

Business
OAK GROUP
ENHANCES FUND
EXPERTISE
BY MARK WOODALL, MANAGING DIRECTOR, OAK FUND SERVICES (GUERNSEY) LIMITED
A MATURING INDUSTRY
As the financial services industry
matures, the Channel Islands
continue to see an increase
in consolidations resulting in
integrated, multi-jurisdictional
service providers covering fund,
fiduciary, trust and corporate
services. While the majority
of mergers and acquisitions
have been facilitated through
private equity investment, Oak
Group ('Oak'), a private client,
corporate services and fund
administration business, has
taken a fresh approach.
THE OAK BUSINESS MODEL
Oak has completed a number of
acquisitions backed by investment
from a local, listed fund whose
investors are based in the
Channel Islands. With long-term
committed capital, Oak intends to
grow steadily, placing an emphasis
on client service and retention
to create value in the business
without the internal financial
pressure that is typical of most
M&A transactions. This innovative
approach offers the opportunity
for the continued involvement
of the original principals from
each of the companies acquired
and for employees to obtain
an interest in the business.
ACQUISITION OF IAG
In May 2019, Oak completed the
acquisition of Guernsey-based
fund administrator, International
Administration Group ('IAG'). IAG
is a specialist provider of fund
administration and depositary
services to private equity,
open-ended, listed and alternative
asset fund structures. IAG has
nearly 20 years of expertise in
fund administration and provides
a full suite of services including
financial reporting, company
secretarial and corporate
governance, cash management,
investor services, listed fund
services, compliance and
regulatory applications. IAG has
given Oak its first substantial
fund administration operation
and is now the centre of fund
expertise within the Oak business.
THE FUTURE OF FUNDS
The alternative asset industry has
seen significant growth over the
last decade with corresponding
growth in assets under
administration across every asset
class. Both new and established
managers continue to recognise
outsourcing as an essential
component of structuring and
managing their funds. Similarly,
investors increasingly expect to
see evidence that fund managers
have commissioned the services
of an experienced third-party
administrator to provide process
transparency, credibility and
professionalism to the operations.
The increased need for asset
managers to be flexible and
deliver more detailed reporting
to investors demonstrates the
growing complexity of fund
administration and the need
to have the best people using
best-in-class technology to
deliver a quality service. As part
of Oak, we have strengthened
our jurisdictional and asset class
coverage. We look forward to
giving clients the opportunity to
leverage our reputation, resources
and expertise as an established
fund administrator and offer
them access to a specialist team
of professionals supported by
leading industry technology.
COLLABORATION
We are very excited to have
joined Oak to become the
centre of its fund administration
services. We agree on the
fundamental importance
of a personal, director-led
approach to client service
and Oak made the continued
involvement of IAG’s shareholders
a condition of the deal.
In order to capitalise fully on our
growing reputation in the market,
we sought a partner who could
provide a larger platform and
complementary skills to help us
achieve our goals. Recognising
the needs of clients and staff,
we concluded that Oak provided
the most attractive option.
Stuart Platt-Ransom, Chief
Executive Officer of Oak,
said: 'IAG has significant
experience within the funds
industry - they are specialists
in delivering a tailored and
professional fund administration
service, so I’m pleased that
their highly knowledgeable
team is joining Oak.'
Guernsey will remain the
centre of operations for IAG’s
fund administration services
and IAG will be able to offer
its clients a broader range
of services and solutions in
Guernsey and elsewhere.
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