Appleby has agreed to sell a significant minority stake in its global services business to New Mountain Capital, an investment firm with about $60 billion in assets under management, as the offshore legal and fiduciary services group looks to expand its operations.
Appleby said its existing management team and partners will continue to lead the business and retain majority ownership. The firm plans to use the investment to support expansion into new jurisdictions and service lines, technology investments and potential acquisitions.
Under the agreement, New Mountain will acquire its minority interest through a newly established Cayman Islands company that will indirectly hold Appleby Global Group LLC. That entity operates as a managed service organisation for Appleby’s law firms and owns its global services entities.
Appleby said the structure will not change ownership and control of its individual law firms, which will remain with partners qualified in their respective jurisdictions. The group has more than 500 employees, including about 200 lawyers, across 11 offices in eight jurisdictions.
Group Managing Partner Malcolm Moller will become CEO of Appleby when the transaction is completed. Moller said the investment would allow the firm to expand while increasing investment in technology, innovation and client services.
“The decision to accept investment from New Mountain has been driven by our desire to enhance client experience, to develop opportunities for our colleagues, and to continue to develop a platform that is the first port of call for clients in each of the jurisdictions in which we operate,” he said. “New Mountain’s investment positions the firm to expand into new jurisdictions and service lines, further invest in technology and innovation, and enhance client service.”
Sara Israel, a director at New Mountain Capital, said the investment firm plans to support Appleby’s growth through spending on talent, technology and mergers and acquisitions.
New Mountain Managing Director Harris Kealey added: “Appleby enjoys a leading reputation across its jurisdictions and we see strong, long-term growth tailwinds across each of those markets. New Mountain is well-positioned to support the ambitious growth strategy – we have deep experience scaling professional services firms through organic expansion and strategic acquisitions. The opportunity for Appleby employees to increase equity ownership and participate in the future success of the firm is central to our partnership approach.”
Guggenheim Securities and Ropes & Gray LLP are advising Appleby on the transaction. Piper Sandler is advising New Mountain Capital, with Simpson Thacher & Bartlett LLP and Addleshaw Goddard LLP serving as legal advisers.
