HMT LLP provided combined buyside advisory services to Ethos Partners’ portfolio company Compliancy Services, one of the UK’s leading providers of compliance consultancy and regtech services on their bolt-on acquisition of Portman Compliance.
Founded in 2003, Compliancy Services is a market leader in its sector, providing compliance consultancy and regtech services for firms that offer regulated financial services. Compliancy addresses an attractive growing market driven by regulatory change and provides business-critical services to a broad spread of regulated financial services clients. They help clients become authorised by the Financial Conduct Authority and the Prudential Regulation Authority and manage their ongoing compliance and regulatory obligations.
The bolt-on, which has been supported by private equity specialists Ethos Partners, will enable Compliancy Services to double the size of its specialist funds team. The deal will boost the company’s overall headcount to nearly 60 staff, servicing over 800 clients across its specialist teams. The expansion comes following rapid growth for both firms, with average annual revenues rising 20 per cent year on year, for the last five years.
The deal will see Portman’s existing portfolio of over 150 clients, the majority of which are hedge funds and private equity organisations, continue to be serviced by the Portman team, within the Compliancy Services business. By doing so they will benefit from the company’s scale and expertise. Nancy King, founder of Portman, will head up the new specialist funds division and lead client accounts in the newly created role of Senior Managing Director.
Compliancy Services now provides a complete range of consultancy to its clients, in the areas of banking, capital markets, including hedge funds, private equity, asset management, wealth management, corporate finance and broking, payment services, consumer credit, insurance, and lending.
The HMT team provided full buy-side advisory support on the transaction, incorporating due diligence and financial modelling.
Scott Bannerman, Investment Director at Ethos commented:
“The team at HMT once again, provided great support on this transaction delivering high quality financial and commercial insight and analysis. They were efficient in getting the process going, worked in a flexible and communicative way, and, as always, their advice was clear and concise. We look forward to working with them again.”
Paul Read commented:
“We are delighted to have advised Compliancy on their merger with Portman. By joining forces, Portman and Compliancy have created a market leading business in the compliance consultancy sector. We look forward to working with Ethos and Compliancy again as the business grows.”