IMS Group makes US acquisition

Sovereign Capital, the UK private equity Buy & Build specialist, today announces that its financial services regulatory compliance investment, The IMS Group (“IMS”) has made its first international acquisition with the bolt-on of New York-based HedgeOp Compliance LLC (“HedgeOp”).  This is IMS’s second bolt-on following its acquisition of UK-based Regulatory Solutions in 2011.

HedgeOp provides similar services to those of IMS, namely regulatory compliance support such as SEC registration applications and ongoing compliance consultancy, predominantly to US-headquartered hedge funds, fund of funds and other investment managers.  Its clients range in size from start-ups to established managers with billions under management.

Since HedgeOp was founded in 2001 it has built a strong reputation for the quality of service offered and it now has offices in New York, Boston and San Francisco.  Today HedgeOp is widely regarded as one of the two leading providers of compliance consulting services in the US. 

This acquisition is an important strategic step in IMS’s Buy & Build growth plan as clients increasingly look for compliance providers with multi-jurisdiction expertise, particularly following the introduction of the Dodd-Frank Act in the US.  HedgeOp’s experienced management team and staff will all continue in their roles post acquisition and will benefit from the enhanced career development opportunities that will result from being part of a larger company.

IMS has grown considerably since Sovereign’s investment in November 2010 – it has doubled in size and is now the largest compliance consultancy in Europe.  IMS was recognised with four industry awards in 2011, including “Best European Regulatory Advisory Firm,” at the Hedge Week awards and “Compliance Consultancy of the Year” at HFM Week’s European Hedge Fund Services Awards.

Commenting on the transaction, Neil Cox, who led the deal for Sovereign Capital, said: “Only 14 months after investing in IMS Group, we are delighted to have assisted the business in achieveing one of its key objectives, that of establishing an international presence.   We look forward to building on this acquisition with further overseas investments and organic rollouts and continuing our work with IMS to create a truly global leader.”

 
Michel van Leeuwen, CEO of the IMS Group, said: “IMS has always sought to grow its business in line with the needs of our clients and as regulatory requirements become more consistent globally, we plan to create a global regulatory services group. I greatly look forward to working with HedgeOp, which has an excellent reputation.”

Lloyds TSB Corporate Markets Acquisition Finance continued its support for IMS by providing debt for the transaction.