Waystone, a provider of institutional governance, risk and compliance services to the asset management industry, has secured significant investment from Montagu Private Equity, a European private equity firm, to accelerate its global growth strategy.
The investment represents a significant opportunity for Waystone to build upon its current expansion plans and continue to invest in offering its clients an extensive set of global solutions and unrivalled quality of service. The investment, which is subject to regulatory approval, will see Montagu take a strategic stake in the business and support the next phase of Waystone’s growth.
The investment will also conclude Waystone’s successful partnership with MML Capital Partners following their investment in 2019. With MML’s support, Waystone has grown organically and through corporate transactions to become the leading institutional global governance, compliance, and third-party management company.
Formed from the merger between MontLake, MDO and DMS, Waystone launched in March 2021 to create the first truly institutional global governance and third-party management company with a unique portfolio of services and talent. Following the investment by Montagu, Waystone’s leadership team will remain unchanged and all existing management shareholders will remain in place.
Derek Delaney, Global CEO at Waystone, says: “This investment takes the merger of MDO, MontLake and DMS to the next level of value for our clients and it validates the merits of our decision to come together. As we continue to scale this business globally, our clients can now appoint a management company on the same institutional footing as their administrators and auditors. I would like to take this opportunity to thank my team, along with MML for their unwavering support and enthusiasm as we bring our regulatory support model to the global marketplace. We look forward to working with Montagu, as we build on our unique solution set for all core markets and domiciles.
Waystone has always been responsive to its clients’ needs and that is based on the recognition that there is a desire for more than a single service management company. Our clients want a comprehensive regulatory solution across all core markets and domiciles. We have met this demand and we will continue to listen to our clients as we evolve. We are grateful to all of our clients for their continual support.”
Richard Mayers, Partner, MML Capital, adds: “The Waystone transaction is a blueprint for MML’s partnership investment philosophy. It has been an incredible journey, working with Derek and his team who have delivered on the strategy to become the leading global provider of fund governance, risk and compliance services. This is a talented team and we have thoroughly enjoyed our involvement in such a fast-growing business. We wish Waystone the best of luck in the next phase of its journey. We would also like to thank Chris Fowler and the team at CVC Credit Partners for their unwavering support of the business.”
Tobias Weltin, Director, at Montagu, says: “As a private equity partner, we recognise the huge growth opportunity in the financial services sector and specifically a third-party management company with Waystone’s global reach and competitive strength. Our investment and partnership will enable Waystone to further accelerate the development of its leading products and services. We look forward to working with Waystone and its strong management team, as it accelerates its institutional global growth to meet the future needs of its clients.”
Waystone’s shareholders were advised by Baird (John Sun), Squire Patton Boggs (Julian Ciecierski-Burns), Grant Thornton (Dara Kelly, Brian Murphy, Dwayne Price), Oliver Wyman (Sean Farrar), Lockton (Calvin Barnes) and EY (Ari Constantinou).
Management was advised by Matheson (Padraic Roche) and Liberty Corporate Finance (Tim Thomas).