Abu Dhabi’s Wealth Fund Buys Stake in CVC-Owned TMF Group

Abu Dhabi Investment Authority has agreed to invest in TMF Group, the corporate-trust services provider owned by CVC Capital Partners that had been exploring an initial public offering.

The Middle East sovereign wealth fund will take a significant minority stake in TMF and a seat on the company’s board, the people said, asking not to be identified discussing confidential information.

TMF provides services including bookkeeping, payroll, fund administration and compliance to multinational corporations and financial institutions. CVC agreed to buy the company in 2017 for a total consideration of 1.75 billion euros ($1.78 billion). TMF expects to post double-digit revenue growth this year, the people said.

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Representatives for ADIA, CVC and TMF declined to comment.

Earlier this year, CVC considered taking TMF public. That was before the market for listings was hit by multiple risk factors, including inflation, hawkish central bank policy, the war in Ukraine and threat of recessions. As a result, IPO candidates are increasingly exploring other options for raising funds.

CVC in 2021 attempted to take over Dutch tax administration specialist Intertrust NV and merge it with TMF in a deal that would have created a global giant in tax administration and corporate trust services. It lost out to rival bidder CSC, a US provider of compliance and legal services.

Source: BNN Bloomberg

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