ManCos: Some are struggling

A wave of consolidation is taking place in ManCo hosting business. Lawson Conner has just been acquired by SGG, a Luxembourg based service provider.

Luxembourg looks like being at the centre of this consolidation. The sector has over-expanded and there isn’t enough new business to go around – despite Brexit. Brexit was expected to be big boom for Luxembourg based third party ManCo hosting platforms. It was reported to be one of the reasons why Sanne bought LIS in 2017, a Luxembourg based ManCo specialising in private equity, for multiples that surprised many in the industry.

On top of which 2017 was a good year for third party ManCo hosting platforms overall. According to industry research conducted by The Tracker, The NED’s sister publication, at the end of last year there was a growth of 34% of alternative fund assets on to these platforms and an increase of new funds of 18%.

To read more on this story see the July issue of The NED.