(Bloomberg) -- The owners of Alter Domus are considering a possible sale of the fund administration platform, according to people familiar with the matter.
Private equity firm Permira and the company’s founders have held some inital discussions with potential suitors as they study a sale of part or all of the business, one of the people said. Alter Domus may be valued at several billion dollars in any deal, the people said, asking not to be identified discussing confidential information.
They are also considering other options, including a possible initial public offering of Alter Domus, one of the people said. Any sale could attract private equity firms, as well as financial services providers, according to the people.
Deliberations are ongoing and both Permira and Alter Domus’s founders may still decide to remain invested in the business, they said. A representative for Permira declined to comment, while a spokesperson for Alter Domus didn’t immediately respond to request for comment.
Founded in 2003, Alter Domus employs roughly 3,600 staff. It handles administrative and compliance issues -- including cash management and know-your-customer requirements -- for private equity and other alternative investment firms and has more than $1.6 trillion under administration. The company generated revenue of 464 million euros ($482 million) last year. Permira invested in the business in 2017.
Other firms operating in the sector include private equity-backed Apex Group Ltd., which last year agreed to buy business services provider Sanne Group Plc, HSBC Holdings Plc’s Inka and Montagu’s Universal Investment. Gen II Fund Services, a competitor of Alter Domus, secured investment from General Atlantic and Hg in 2020.
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