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TMF Group Acquires Paraty Capital

11 January 2022

TMF Group, a provider of global administrative services, acquired Paraty Capital, a Brazilian fund administration platform which focuses on private equity, infrastructure, venture capital and private debt funds, for an undisclosed amount.

(TMF Group) TMF Group, a leading provider of global administrative services, has today completed the acquisition of Paraty Capital, a Brazilian fund administration platform which focuses on private equity, infrastructure, venture capital and private debt funds.

As a result, TMF Group will now administer more than EUR 160bn of assets on behalf of its fund manager clients, providing end-to-end fund administration solutions in Brazil, the United States, Cayman Islands, Guernsey, Jersey, Luxembourg, Singapore, India, Hong Kong, China and Australia.

The acquisition is a key milestone in TMF Group’s strategy to grow its global fund services business and bolster its capabilities in the Americas. As well as offering fund managers unrivalled coverage across South America, it can now also provide administration services to regulated Brazilian funds.

The deal follows other carefully selected acquisitions that have taken place recently, including that of Venture Back Office, a fund business in the US; State Street’s fund administration business in the Channel Islands; IQ-Nexus in The Netherlands; and Selectra, a third party AIFM Manco in Luxembourg.

Michael Seligman, Head of Iberia and Latin America, stated: “We are delighted to welcome the team at Paraty Capital into the TMF Group fold. The Latin American market is particularly important for the group due to its strong links to the US market and its global growth potential.

“Paraty’s offering is complementary, providing a range of services from fund administration to investor services, as well as solutions for management and portfolio companies. It has a strong reputation in the market and an impressive number of private equity and venture capital funds.”

He concluded: “The team’s local expertise, as well as our global reach and increased presence in the US, looks set to make this region a key area for significant growth in 2022.”

Andrew O’Shea, TMF Group’s Global Head of Fund Services, commented: “TMF Group is the clear market leader in supporting GPs across Latin America. The addition of the Paraty team strengthens our offering and underlines our commitment to the region. We can now offer a complete administration solution to GPs.”

He continued: “Brazil is an exciting market for international investors. However, a deep understanding of the local market is required for our clients to be successful. The challenges are reflected in it being ranked as the most complex place to do business out of 77 jurisdictions in TMF Group’s Global Complexity report. The TMF Brazil team, made up of more than 750 people, offers that expertise. The combination of our strong organic growth and acquisitions made in 2021, also positions us as a dominant global player in fund administration.”

Talking about the move, Christiano Jonasson, co-founder of Paraty Capital, stated: “TMF Group has a lot to offer our clients and we are excited to be joining forces with them. Their global footprint, use of technology and complementary service offering makes them a real provider of choice in the marketplace both for our clients and employees.

Paraty Capital has been providing independent third-party fund administration services since 2014 and has over BRL15billion in AUM.

The sellers were assisted by Stocche Forbes (legal advisor) for this transaction. TMF Group was assisted by Brasilpar (corporate finance), KPMG (tax), Mattos Filho (legal).