Public Pension Capital (PPC) and FiveW Capital today announced they, together with Viteos management, have acquired Viteos Fund Services, a leading provider of middle- and back-office technology and services for the investment management industry. The transaction brings together a group of financial and strategic investors experienced in building and growing technology and service providers. The Viteos management team will continue to lead the company.
Viteos, founded in 2003, provides customized straight-through-processing and integrates post-trade operations for the investment management industry in the United States, Europe and Asia. It is a leader in shadow-accounting services and offers a full range of middle- and back-office outsourcing through its 500+ employees and straight-through-processing technology. Viteos has been growing its client base which now includes some of the world largest alternative managers who face numerous challenges in today's complicated operating environment. As alternative managers consider the stakes for sustained growth, outsourced shadow-accounting as an extension of in-house operations provides access to capabilities that are critical to investment operations.
Said Thomas Uger, Partner and Head of Business Services at PPC: "Viteos is the leading provider of outsourced middle-office and shadow accounting services to hedge funds and other alternative asset managers. We are very pleased to partner with the Viteos management team and support further investment in technology and human resources, allowing the company to deliver even more value to investment managers."
Said, Randall Winn, CEO, FiveW Capital: "As part of our investment, we assembled a group of strategic co-investors including a series of principals of alternative asset managers, and alternative allocators who understand Viteos' value proposition and track record of stellar client service. This group intends to assist Viteos in sustaining its growth and bring its capabilities to more clients."
Said Shankar Iyer, CEO, Viteos: "The backing of PPC and strategic investor FiveW Capital, their seasoned principals, investors and longstanding relationships, will complement our organic growth and launch us into the next chapter of Viteos' story. We will have more resources to expand and develop our offerings for other investment managers."
Said Chitra Baskar, COO, Viteos: "The array of assets we built over 14 years – our conscientious skilled employees, impeccable reputation, and innovative technology, has provided significant value as proven by our growing roster of top tier clients. We want to assure our marketplace position and will continue to invest in and lever these assets as we elevate awareness of our offering under the PPC umbrella."
Credit Suisse acted as financial advisor to Viteos.
Founded in 2003 and headquartered in Somerset, New Jersey, Viteos Fund Services provides customized straight-through-processing and integrates post-trade operations across virtually every asset class, currency, border, or structure for the alternative investment management industry in the United States, Europe and Asia. It is a leader in shadow-accounting services, middle- and back-office outsourcing services and licenses its platform to investment managers.
Public Pension Capital is a New York City-based private equity fund, founded by former senior partners of Kohlberg Kravis Roberts & Co. PPC invests in a select group of industries, including Business and Industrial Services, Financial Services, Healthcare and Specialty Chemicals.
FiveW Capital is a private equity group, led by the co-founder and former CEO of Capital IQ. FiveW frequently invests in founder-led businesses which are data, analytics and technology intensive, leveraging lessons learned in building Capital IQ to support growth.