HgCapital, the European sector-focused private equity investor, and ATC Group, the leading independent provider of corporate services to multinational corporations and financial institutions have today announced an investment by HgCapital in ATC Group.

Under the terms of the agreement, funds managed by HgCapital will acquire a 61% shareholding in ATC Group through the buy-out of three founder (manager) shareholders, while the remaining manager shareholders will maintain their interest in ATC Group and will collectively own around 39% of the company.

ATC Group is one of the oldest independent trust companies in the world. Founded in 1893 and headquartered in Amsterdam, ATC Group provides fiduciary, management and administration services to multinational corporations, financial institutions, investment funds and entrepreneurs, across the most important financial international jurisdictions.  Since its inception ATC Group has been a management-owned company, each manager shareholder transferring his shares to the next generation. The growth of ATC Group in the last two decades, and its ambition to accelerate such growth in the years to come, prompted shareholders and management to seek external capital investment.

With the assistance of HgCapital, ATC Group will be able to develop its market strategy, reinforcing its position in Europe with a significant footprint in Asia, providing high value added services to corporate and institutional clients. Under this strategy, ATC Group aims to build on its best-in-class reputation, serving tier-1 corporate clients and institutions in well-regulated jurisdictions, while retaining market leadership in institutional services in the Benelux countries.

HgCapital’s sector-focused approach continues to drive targeted investment origination.  The investment in ATC Group was completed after two years of research into the trust and fiduciary services market and represents the continued application of HgCapital’s thematic, sector-driven investment strategy. Because of the depth of its focus on this market segment, HgCapital was able to directly source the ATC Group investment opportunity on a wholly proprietary and off-market basis.

The investment is anticipated to complete in December 2010 following receipt of regulatory clearances.  Upon completion, Johan Lont will assume responsibilities as Chief Executive of ATC Group with Jan Scholts as Chief Financial Officer.

Commenting on the investment, Matthew Rourke, Head of HgCapital’s Services investment team, stated: “We are delighted to invest in ATC Group and support the company in its shareholding succession in addition to funding future development of the business. ATC Group displays a number of key characteristics which HgCapital finds compelling as it is a leading, high-quality provider in a fast growing market.  Fiduciary services have been a major focus in our direct origination strategy, and our knowledge of the sector has allowed us to identify and partner with a high quality and fast growing business at the forefront of the industry.

The company has consistently and systematically grown market share in its core jurisdictions and its business model has proven highly resilient through the downturn.  We are confident that we are also supporting an outstanding management team who will continue to outperform the wider market.”

Johan Lont, executive board member of ATC Group, said: “We are happy that the three founder shareholders are willing to accommodate the entry of a financial investor who can add value, working with management to take ATC Group to the next level. In HgCapital we have found an investor who shares our values and can add expertise and knowledge of the industries and markets in which we operate. This investment is a vote of confidence in our business and our industry. Our continued involvement, as management and shareholders, will secure the continuity of ATC Group’s personal and business partners’ approach.”