Saffery’s fund services acquisition a big step for MJ Hudson Group

The specialist service provider to the asset management industry has acquired Guernsey-based fund administration Saffery Champness Fund Services.

It said completion of the transaction, which is subject to local regulatory approval, was expected to double MJ Hudson’s fund administration revenues in Guernsey, with a 50% increase in local staff numbers. Seven staff members will transfer to MJ Hudson as part of the deal in addition to the group ‘hiring selectively’ to support its growth.

The deal comes hot on the heels of MJ Hudson’s recent acquisition of Guernsey-based regtech firm Clarus Risk, which it said would extend the data and analytics services provided to clients.

‘We are pleased to welcome the SCFS team and its clients to MJ Hudson.

‘This acquisition adds scale and expertise to our existing Guernsey operation,’ said Mark Pattimore, managing director of international administration at MJ Hudson.

‘Our dedicated funds infrastructure and alternatives expertise will benefit SCFS’s many fund clients.

‘We look forward to supporting the team as it pursues an extended new business pipeline as part of MJ Hudson.’

Nick Batiste, managing director of Saffery Champness Registered Fiduciaries, said the firm was pleased to confirm that, subject to regulatory approval, it had reached agreement with MJ Hudson Group for the acquisition of its Guernsey-based funds services business.

‘The conclusion of this process marks an important step forward in our evolution as a firm as we continue to deepen our focus on our core business, centred on the provision of independent fiduciary services to our clients around the world.

‘It was vitally important to us that we identified a solution which ensured long-term continuity of services to our clients and which provided for our team.

‘MJ Hudson not only has significant synergies with our business model and corporate values, they also share our steadfast commitment to excellent client service.

‘We wish the team all the best for the future with MJ Hudson.’

Founded in 2007, SCFS’s core services include fund administration and fund accounting as well as valuation and corporate secretarial work.

Based in the UK and northern Europe, SCFS’s largely alternative asset clients have a combined assets under management of £418m.

On consolidation, the business will be managed by MJ Hudson’s local management team within its outsourcing division and will trade under the new owner’s brand.

The maximum consideration for SCFS is £2.8m. in cash and is subject to performance criteria over a two-year period.

The acquired business generated revenues of £1.4m. for the 12-month period to March 2021.