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Luxembourg-based investor services group IQ-EQ is expanding into Australia through the acquisition of AMAL Group, a Sydney-headquartered group that provides corporate trust, agency services and loan servicing solutions nationally.
The private equity-backed IQ-EQ, which has operations in four continents with more than US$750 billion in assets under administration (AUM), says the acquisition supports its strategy of expanding its global corporate trust and loan servicing business into key new growth markets.
IQ-EQ, which is owned by private equity group Astorg Partners, has signed an agreement to acquire the AMAL Group amid an acceleration of Australia's corporate trust market.
While the deal remains subject to Foreign Investment Review Board (FIRB) approval, once the acquisition is settled AMAL Group will be rebranded as IQ-EQ, boosting the European group’s existing footprint to 27 countries employing more than 6,000 people.
AMAL Group, which was founded in 1994, is the region's only integrated provider of loan servicing, corporate trust and agency services, with more than $37 billion of funds under administration and supervision in Australia and New Zealand.
IQ-EQ notes that the corporate trust market in Australia has been expanding quickly with double-digit growth year-on-year in the securitisation market which has been driven by expansion of the non-bank lender market.
“With superannuation assets projected for 2025 to total $4.1 trillion and $11.5 billion in alternative investment flows, we're witnessing a significant shift driven by increased allocations to alternative assets such as infrastructure, real estate, and private equity,” says IQ-EQ.
“As interest rates ease private market fund managers are increasingly moving more into this market with high single-digit growth expected across real assets and private credit and private equity. These market conditions are causing demand to rise for sophisticated, end-to-end trustee and loan administration solutions.”
Mark Pesco, the CEO at IQ-EQ, describes the acquisition of AMAL Group as a “significant milestone” in his group’s global expansion strategy.
Pesco sees AMAL Group as “an exciting opportunity to secure an important presence in two key new markets and take ownership of a leading corporate trustee, agency services and administration business”.
"The AMAL Group's addressable market spans the four key reporting segments of trustees – securitisation, wholesale loans, funds, and managed investment trusts, each of which have unique market dynamics and client requirements,” he says.
“As the only scaled end-to-end provider of trustee services and loan administration in Australia and New Zealand, this positions us to grow our corporate trust and loan administration business in synergy, cross-selling into our global client base and servicing our existing global clients amid growing demand for services in these new markets.”
Richard Surrency, group chief commercial officer at IQ-EQ, points out that AMAL Group brings “deep client relationships, strong regulatory foundations, and market-recognised top-tier servicing capability to the table”.
“Their highly experienced management team, full suite of licences, and proven technology infrastructure allows us to drive operational efficiencies, scale our offering, and accelerate growth across corporate trustee, loan administration and fund administration services,” says Surrency.
“We're particularly excited about the opportunity to build on its established track record in securitisation, and we hope to expand into adjacent areas over time."
The former principals of AMAL Group, Nick Procter and Tony Grant, will continue to lead the business and will join the senior leadership team of IQ-EQ Asia which the group says will ensure continuity of the day-to-day delivery of services.
"Being part of a dynamic global player like IQ-EQ is a terrific market development that will enable AMAL to better service its existing clients and offer new products and services to a wider variety of markets and strategies,” says Procter, the CEO of AMAL Trustees.
“This transaction is good for everyone; for both businesses, for our clients and for the expert team of people who will help drive a smooth integration, business growth and success. We're excited about what we can offer the Australian market and can't wait to get started together."
Financial details of the acquisition have not been disclosed.
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