A New Beginning For The Independent Trustee Model
Pacific Infrastructure Partners (‘PIP’), a new entity formed for the purpose of investing in technology-enabled financial services, today announces the completion of the acquisition of key operating entities and assets of the Sargon Capital group of companies (‘Sargon’).
New York-based financiers Teddy Wasserman and Australian Matthew Kibble led the transaction through Cloverhill Group LLC and Kibble Holdings LLC respectively. They are joined as equity shareholders in PIP by Vista Credit Partners (‘VCP’), who also provided financing for the transaction. VCP is a strategic credit investor and financing partner offering a variety of capital solutions to the enterprise software, data and technology market. VCP is the credit-lending arm of Vista Equity Partners (‘Vista’), a leading global technology investor.
Cloverhill Group Managing Partner, Teddy Wasserman said, “We believe the proprietary next-generation trustee infrastructure that Sargon has developed to be world-class technology. As the new owner, PIP brings funding capacity, leadership capability and strengthened governance to unlock its enormous potential, as well as take advantage of what is a significant market opportunity, given the sector tailwinds and underinvestment in legacy systems. We are pleased to bring on board an experienced partner like Vista Credit Partners and thank them for the speed and certainty with which they executed this transaction.”
The cloud-based platform developed by Sargon delivers clients greater transparency over funds and reduces costs and complexity, while at the same time providing more scalable and reliable operations.
David Flannery, President of Vista Credit Partners, said, “This is a tremendous asset class and Australia is recognised as having one of the best models of superannuation and retirement savings in the world. Vista and VCP have a long and proud track-record of backing companies like Pacific Infrastructure Partners, which are at the forefront of digital transformation and have the intellectual property capable of winning on a global stage. We are pleased to make this significant investment to provide capital to PIP and we look forward to helping leadership realise their vision as part of the Vista ecosystem.”
The Australian Prudential Regulation Authority (‘APRA’) has approved PIP’s acquisition of the three Registrable Superannuation Entities that were previously part of Sargon: Diversa Trustees Limited, CCSL Limited and Tidswell Financial Services Ltd. Similarly, the Treasurer has approved the purchase of the operating entities and assets after a recommendation by the Foreign Investment Review Board (‘FIRB’).
Kibble Holdings Managing Partner, Matthew Kibble, said, “We have appreciated the significant efforts and professionalism of FIRB to expedite the transaction and preserve close to 100 Australian jobs. It is pleasing that our intentions to protect and steward the Sargon businesses have also been recognised by regulators including APRA. PIP is committed to delivering the highest of standards for all stakeholders, including our clients and members.”
Former CEO and executive director of leading property technology company PEXA, Marcus Price, has taken on a role as Strategic Adviser to PIP. He will assist in the ongoing management and leadership of the business during the ownership transition.
Initially, Messrs Wasserman and Kibble will be on the board of PIP and will be joined by Sue Thomas as an independent non-executive director. Ms Thomas has extensive financial services experience, including superannuation and the obligations of trusteeship. PIP is finalising the appointment of a new Chief Executive and is in the process of identifying and appointing an independent Chairman as part of further plans to strengthen governance.
Cloverhill Group and Kibble Holdings were advised by Andy Corkhill of Quinn Emanuel and Mark Currell of Clifford Chance.
About Pacific Infrastructure Partners
Pacific Infrastructure Partners (PIP) is a new entity formed for the purpose of investing in the financial services industry to support the delivery of strong, independent, technology-enabled trustee solutions. In May 2020, PIP completed the acquisition of the key operating entities and assets of financial technology and infrastructure company, Sargon, including Sargon’s trustee, corporate trust and responsible entity operations, and its proprietary technology infrastructure. PIP’s shareholders include Cloverhill Group LLC, Kibble Holdings LLC (including KH Investment Trust) and Vista Credit Partners.
Cloverhill Group LLC is a permanent capital investment platform with USD$500 million of invested capital. Cloverhill Group investors include the family offices of partners at investment firms such as Apollo, Blackstone, Goldman Sachs, Oak Hill, Oaktree and PointState Capital. Teddy Wasserman founded the firm in 2016 after a 16-year career in investment banking at Goldman Sachs and Deutsche Bank.
Kibble Holdings LLC invests in, and works closely with, a select group of entrepreneurs, family offices and high net worth investors to build a unique portfolio in early-stage and growth consumer, technology and media companies.
Vista Credit Partners is a strategic credit investor and financing partner focused on the enterprise software, data and technology market and the credit-lending arm of Vista Equity Partners (‘Vista’), a leading global technology investor. Since its formation in 2013, VCP has deployed over $5.2 billion and grown to over $2.8 billion assets under management.