SHARES in hedge fund administrator GlobeOp leapt by more than a fifth yesterday after it agreed its £508m sale to US private equity house TPG Capital.
The stock closed up 21.27 per cent at 430.5p after TPG set out to build a presence in the market serving the $2 trillion (£1.26 trillion) hedge fund sector.
The Texas firm could make more deals in the sector, sources said, while it wants to grow GlobeOp organically.
TPG beat Advent International to the deal. It is offering 435p per share in cash for London and New York-based GlobeOp, which administers $173bn in client assets.
The deal marks a premium of nearly 50 per cent to GlobeOp’s 5 January share price, just before it announced it was in talks with TPG.
GlobeOp chief executive Hans Hufschmid and his team will continue to run the firm and will reinvest 70 per cent of their proceeds from the sale.
A series of London advisers worked on the deal, with Barry Weir and James Thomlinson from JP Morgan Cazenove advising TPG, and Edward Banks from Evercore Partners advising GlobeOp, whose corporate brokers are Bank of America Merrill Lynch and Espirito Santo Investment Bank.
TPG’s lawyers were Linklaters, led by private equity partner Carlton Evans.
