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DAVY GROUP

Davy Global Fund Management to be acquired by IQ-EQ

  

Tom Berrigan, Chief Executive Officer, Davy Global Fund Management

Tom Berrigan, Chief Executive Officer, Davy Global Fund Management

Sale Process Update

We are pleased to announce agreements that will see Davy Global Fund Management being acquired by IQ-EQ and our shareholding in Rize ETF being acquired by AssetCo. At the same time, Davy has also announced an agreement to sell its Wealth Management, Capital Markets and associated businesses to Bank of Ireland.

In joining forces with IQ-EQ DGFM benefits from a well-funded, highly entrepreneurial business committed to building its funds services business on a global scale. This compelling combination creates an established funds business in Ireland with a proven track record and prominent market position and will allow us to be a part of a truly global investor services company, with scale in all key jurisdictions.

The decision to sell DGFM to IQ-EQ was made as part of a broader sales process focussed on finding long-term strategic owners for Davy and its businesses.

Our guiding principle throughout this sales process has been that the right owner for the Davy businesses is the owner that is right for our clients and people. We believe that IQ-EQ offers the right strategic fit, presenting significant opportunities to meet the growth ambitions of DGFM’s clients and the career development and progression aspirations of our people.

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.

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IQ-EQ is a leading investor services group that brings together a rare combination of global technical expertise and deep understanding of client needs. It has the know-how and the ‘know you’ to provide a comprehensive range of compliance, administration, asset and advisory services to fund managers, multinational companies, family offices and private clients operating worldwide.

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.

Also part of the IQ-EQ group of companies are First National Trustee Company (FNTC), Lawson Conner, Equitis, The Private Office, Peru & Partners, Blue River, Conseil Expertise & Synthèse, Constellation Advisers and Concord Trust Company.

To find out more about IQ-EQ visit www.iqeq.com

The decision to sell Davy’s Global Fund Management operations (the “DGFM Transaction”) to IQ-EQ was made as part of a broader sales process focussed on finding long term strategic owners for Davy and its businesses.

Our consistent principle throughout this sales process has been that the right owner for the Davy businesses is the owner that is right for our clients and people.

We believe that IQ-EQ is the right strategic fit, presenting significant opportunities to meet the growth ambitions of DGFM clients and the career development and progression aspirations of our people.

The transaction is subject to regulatory approval in Ireland and in Luxembourg. Regulatory approval is expected by the end of 2021.

Today’s announcement follows the decision on the 11th March 2021 by the Board of Directors of J&E Davy to pursue a sale of the Company. This agreement has been endorsed by the J&E Davy Holdings Board and the DGFM Management team as being in the best interests of all stakeholders and follows a competitive sale process led by Davy Capital Markets/Corporate Finance and Rothschild & Co.

We believe the combination of IQ-EQ and DGFM presents significant opportunities for our business and is particularly well placed to support our clients’ growth ambitions and the career aspirations of our talented people.

The acquisition of DGFM creates a market prominent, established funds business fully capable of maximising on the significant opportunities available. The combination of IQ-EQ and DGFM will be an operation of scale with significant opportunities for future growth. For DGFM people, this transaction presents plenty of career progression and mobility opportunities right across the wider IQ-EQ group.

In joining forces with IQ-EQ, DGFM benefits from a well-funded, highly entrepreneurial business committed to building out its funds services business on a global scale.

The combination of IQ-EQ creates an established funds business in Ireland with a proven track record and prominent market position. This compelling combination allows us to be a truly global investor services company, with scale in all key jurisdictions.

This transaction represents a significant growth opportunity with little or no overlap between the two businesses envisaged.

An independent external review process has been conducted by a UK team from global consultancy A&M and its findings and recommendations shared here.

It will have no impact on the timing of the DGFM sale.

There will be complete continuity of service from DGFM.

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Product and service continuity

DGFM will be rebranded to IQ-EQ following receipt of regulatory approval which we hope to receive by the end of 2021. A new entity, IQ-EQ Global Fund Management Ireland, will be created.

The combination with IQ-EQ will give access to a broader range of services.

Though there are no plans to make changes, as has always been the case, nothing would change without prior engagement with our clients and the necessary regulatory approvals.

We will still have offices in all the locations where DGFM currently has offices today (Dublin, London, Luxemburg and Chicago).

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Impact on me as a client

Yes, there will be no change in terms of the people you interact with in DGFM.

There will be no changes to the team or the account handling process on the back of the sale.

Our combined aim will be to ensure that the transition is seamless and that you will not experience any disruption.

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Other questions

Both DGFM and IQ-EQ are committed to keeping clients fully informed throughout the sale and post-regulatory approval integration process.