01 Juli 2019
Silverfleet invests in specialist software provider Microgen Financial Systems Limited
Silverfleet Capital, the leading Pan-European private equity firm, has acquired Microgen Financial Systems Limited, a leading provider of Trust & Fund Administration (“T&FA”) software to the Trust and Corporate Services industry. The acquisition of MFS was executed by Silverfleet’s dedicated lower mid-market investment team1.
Headquartered in Fleet, UK with offices in London, Guernsey, Cambridge and Cyprus, MFS provides front and back office technology solutions to the financial services industry. The firm’s global client base comprises major wealth and asset management firms and trust and corporate services administrators.
MFS generates its revenue through ongoing software licence fees, software maintenance fees and upfront implementation fees. The company’s key product in the trust and fund administration sector addresses the core operational and regulatory requirements of trust administrators, fiduciary companies, corporate services providers and fund administrators.
Silverfleet Capital’s investment will enable MFS to continue its strong growth trajectory by capitalising on increasing technology adoption within the trust and corporate services market, expanding its product range, client base and geographic reach, as well as executing acquisitions to build a clear market leader. Additionally, Silverfleet will apply its extensive expertise in the Trust and Fiduciary Services sector having made several successful prior investments including Ipes and TMF, which generated money multiple returns of 3.7x and 6.2x respectively.
David MacKenzie, Partner at Silverfleet Capital who co-heads Silverfleet’s activities in the lower mid-market, said: “We are delighted to acquire Microgen Financial Systems Limited and execute our second deal in the lower mid-market. We are excited by the prospect of working closely with the high quality management team at MFS to accelerate growth within the business. MFS is a technology leader with a well-established market presence in a sector facing growing regulatory and compliance-related challenges. Our experience in building scale and enhancing value in this sector means we are an ideal strategic partner to drive this company forward.”
Robert Browning, CEO of MFS, adds: “Silverfleet is the ideal partner to take our business forward and enable MFS to become the clear market leader. Their impressive investment experience in this sector is unrivalled, and will be invaluable as we look to execute on our growth objectives. I am looking forward to working closely with the Silverfleet team.”
Silverfleet was advised by CIL (Commercial), BDO (Financial and Tax), Eversheds Sutherland (Legal, Corporate), Intuitus (IT), AJ Gallagher (Insurance) and Spectrum Corporate Finance (Debt advisory). Debt finance was provided by Muzinich and Co.’s Pan-European Private Debt Fund.
1 The transaction was financed in part by the European Investment Fund.