Ocorian and Estera have completed their merger, first announced in July 2019 after Inflexion Private Equity, the owner of Ocorian, acquired Estera.
Both businesses have a law firm heritage. Ocorian was formed in September 2016 in a management buyout of Bedell Trust from Bedell Cristin, while the management buyout of Apply Fiduciary Business in December 2015 resulted in Estera.
Farah Ballands, Ocorian group chief executive officer, called the combination of Estera and Ocorian “extremely powerful”.
“No matter where in the world our clients’ financial interests are structured, we will provide flexible, bespoke solutions that meet their needs as well as the needs of their stakeholders and regulators,” she added.
The combined business will operate under the Ocorian name and offer corporate, funds and fiduciary services across a network of 20 wholly owned offices with 1,250 employees. Locations include Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Hong Kong, Ireland, Isle of Man, Jersey, Luxembourg, Malta, Mauritius, Netherlands, Singapore, United Arab Emirates, and the UK, as well as representative offices in the US and Africa.
The company said in a press statement that it is now the seventh largest corporate, funds and trust player in the world by revenue. Ocorian manages more than 17,000 structures on behalf of about 8,000 clients who are financial institutions, large international organisations and high net worth individuals.
The two firms combined have about US$260 billion of assets under administration.
Richard Gordon, managing director in the Cayman Islands, said, “The opportunities this brings makes it a really exciting time. Both Ocorian and Estera have impressive track records of growth and together we will be able to offer more services in more strategically important jurisdictions including in the Cayman Islands.”
The trust and fund administration business has been traditionally embedded in larger organisations such as banks, law firms and accounting firms. But during the past decade many services were divested and started to operate on a standalone basis, resulting in a more fragmented market.
Private equity companies not only see investment opportunities in the industry but also the potential for concentration, as in the merger of Ocorian and Estare, mainly because clients are typically looking for cross-border one-stop solutions and thus larger multi-jurisdictional service providers.
Simon Turner, managing partner at Inflexion, said, “Since carving out Ocorian from Bedell Cristin in September 2016, the business has successfully completed four acquisitions, significantly diversifying its client offering geographically.”