Global investor services group enters Australia

Global investor services firm IQ-EQ has entered the Australian market with the acquisition of AMAL Group - a provider of corporate trust, agency services and loan servicing solutions.

The strategic acquisition of AMAL Group includes AMAL Asset Management, AMAL Corporate Holdings and their subsidiaries.

IQ-EQ is backed by Astorg, a pan-European private equity firm with more than $42 billion (€24 billion) of assets under management.

IQ-EQ said the acquisition supports its strategy to expand its global corporate trust and loan servicing business and enter key new growth markets.

The firm said it was drawn to the Australian market thanks to strong year-on-year double digit growth in the securitisation market driven by regional growth in the non-bank lender (non-ADIs) market.

"With superannuation assets projected for 2025 to total $4.1 trillion and $11.5 billion in alternative investment flows we're witnessing a significant shift driven by increased allocations to alternative assets such as infrastructure, real estate, and private equity," IQ-EQ said.

"As interest rates ease, private market fund managers are increasingly moving more into this market, with high single digit growth expected across real assets, private credit and private equity. These market conditions are causing demand to rise for sophisticated, end-to-end trustee and loan administration solutions."

IQ-EQ chief executive Mark Pesco said the investment marks a significant milestone in the company's global expansion strategy.

"The AMAL Group's addressable market spans the four key reporting segments of trustees - securitisation, wholesale loans, funds, and managed investment trusts, each of which have unique market dynamics and client requirements," Pesco said.

"As the only scaled end-to-end provider of trustee services and loan administration in Australia and New Zealand, this positions us to grow our corporate trust and loan administration business in synergy, cross-selling into our global client base and servicing our existing global clients amid growing demand for services in these new markets."

AMAL Trustees chief executive Nick Procter said the acquisitions enable AMAL to better service its existing clients and offer new products and services to a wider variety of markets and strategies.

"This transaction is good for everyone; for both businesses, for our clients and for the expert team of people who will help drive a smooth integration, business growth and success. We're excited about what we can offer the Australian market and can't wait to get started together," he said.

The acquisition is subject to regulatory approval from the Foreign Investment Review Board.

Following approval from the FIRB, AMAL Group will be rebranded to IQ-EQ, and the newly combined global IQ-EQ team will total 6000 with an operational presence across 27 jurisdictions globally.