Private equity firm Astorg is preparing to launch a sale of its fund services platform IQ-EQ, with lenders readying around €2bn of buyout debt to support a potential acquisition, according to a report by Bloomberg citing sources familiar with the matter.
Astorg, which acquired control of the Luxembourg-based business in 2016, is expected to formally kick off the sale process shortly. The firm had already approached prospective buyers last year as it explored exit options.
IQ-EQ is a global provider of fund administration, compliance, governance and anti-money laundering services, with more than $857bn in assets under administration and a workforce of over 6,500 employees worldwide.
Bankers are currently in discussions with potential bidders as they compete to secure roles on the financing package, which is expected to consist primarily of euro-denominated leveraged loans. Private credit firms are also vying to provide funding, adding to competition for the deal.
The prospective sale comes amid a growing pipeline of private equity exits and M&A activity, as improving market sentiment fuels expectations of a strong year for dealmaking and leveraged finance. Lenders have been increasingly eager to back sponsor-led transactions, which remain among the most profitable areas of investment banking.
