Clearwater Corporate Finance advised on the management buy-out of bfinance, a specialist financial services consultancy, from its long-term private equity backers The Carlyle Group and Net Partners.
The deal, which was funded by BMS Finance, gives full control of the business to a management team led by CEO and founder David Vafai.
bfinance advises chief financial officers and chief investment officers on the selection of funds, investment managers and banking solutions. The Carlyle Group and Net Partners invested in the business at its inception in 1999.
bfinance now employs over 60 people at its headquarters in London and its offices in Paris, Munich, Milan, Montreal and Toronto. The company has clients in over 20 countries and over the past five years it has achieved compound annual growth of over 30 per cent.
David Vafai said: “The deal represents an important milestone in bfinance’s growth. It creates the opportunity to provide our employees with proper incentives which further enhances the partnership and alignment of interests between bfinance and its clients.”
The Clearwater team which included partner Nick Jones and assistant director Ben Wilson advised the management. Nick Jones said: “The previous funders were seeking an exit and the management team were keen to have a bigger stake in the business – the main challenge was locating a new source of investment in the current climate.
“The use of this unconventional and bespoke finance package demonstrates Clearwater’s ability to find alternative sources of funding in what is a very difficult market. I am also delighted that the deal allows this quality management team to take 100 per cent of the equity on day one. Financial services consultancy can be a difficult market but with its unique business model, bfinance is now very well placed to continue growing its market share.”