Global investor services group IQ-EQ has struck a deal to provide $10.1bn AUA private investment house Flexstone Partners with global fund administration and related services.
In a statement on 15 August, it said the deal is taking place via a unique "lift out" agreement which will see IQ-EQ take on 72 India-based employees.
The landmark deal that will see the investor services group, an Astorg portfolio company, provide the investment firm with global fund administration and a suite of related services. As part of this mandate IQ-EQ has lifted out Flexstone's key servicing team from its legacy provider MB Fund Administration.
Flexstone Partners, an affiliate of Natixis Investment Partners, is a private investments firm with $10.1+bn in assets under management and advisory, including more than 500 funds and over 4,000 portfolio companies. The firm delivers customised private equity, real estate, private debt and infrastructure solutions with specific expertise in hard-to-access small- and mid-cap markets worldwide.
IQ-EQ, led by its US team, will act as Flexstone's global fund administrator. It will also deliver expert carry modelling services, as well as its proprietary portfolio monitoring platform, IQ-EQ Cosmos, which provides visualisation and real-time reporting of investment data across multiple asset classes, underpinned by a market-leading global data platform.
To ensure continuity of service for Flexstone, IQ-EQ has also entered into an asset purchase agreement with Flexstone's previous service provider, MB Fund Administration, whereby 72 India-based employees have transferred to IQ-EQ - supporting a seamless transition to IQ-EQ and consistent service delivery. The team is based in Noida, a satellite city of Delhi.
Emma Crabtree, IQ-EQ's group chief commercial officer, said: "We're thrilled to have secured this complex global deal with Flexstone, a leading player in the private markets. We beat stiff competition in a highly competitive tender process thanks to the expertise of our team, our globally integrated service model and our reputation as a technology-driven, full-service provider of scale.
"We're also delighted to welcome on board the legacy servicing team, who will not only significantly expand our growing Indian operations, but whose in-depth experience working with Flexstone and like-minded dedication to service excellence will ensure we're able to exceed expectations from day one. This is an important mandate for our business and one we're hugely excited to get working on."
Gaurav Arora, now IQ-EQ's chief operating officer for Noida, leads the team that has transitioned to IQ-EQ from MB and will play a key role in the smooth operational transfer between providers and managing the Flexstone business locally.
Arora said: "Myself and the rest of the Noida team are very excited about joining the IQ-EQ Group and the future opportunities that being part of such a dynamic, fast-growing and accomplished global organisation presents. We're pleased that this shift to IQ-EQ allows us to continue to support Flexstone and deliver the highest quality of service, bolstered by IQ-EQ's robust global platform and experienced international teams, who will now gain knowledge of this valued client."
Hans DeWitte, managing partner at Flexstone Partners, said: "Flexstone Partners has built a 20-year track record of investing in the small- and mid-market private equity space. As Flexstone has continued growing - particularly in North America, Europe and Asia - we believe that IQ-EQ is the best partner to help take our business to great new heights.
"IQ-EQ continues to impress with their truly global scale, clear commitment to superior client service, innovative technology and outstanding people. We look forward to leaning on IQ-EQ's expertise in global fund administration to allow us to do what we do best - generating strong and consistent returns for our investors."
Justin Partington, group head of fund and asset managers at IQ-EQ, added: "The entire team at IQ-EQ is delighted to support Flexstone - a great addition to our growing roster of leading private markets clients. Alongside fund administration, we're pleased to be servicing Flexstone with our Cosmos portfolio monitoring solution and full digital offering including data services via our Snowflake platform.
"I am excited to be working with our talented team of private market experts to meet Flexstone's global servicing needs, and a very warm welcome to our newest colleagues in Noida as we move forward in this regard."
