Sanne Group

Sanne Group is a provider of asset management services. It was listed on the London Stock Exchange and was a constituent of the FTSE 250 Index until it was acquired by Apex Group in August 2022.

Sanne Group (acquired by Apex Group)
TypePublic limited company
IndustryFinancial services
Founded1988
HeadquartersLondon
Key people
Rupert Robson (Chairman)
Martin Schnaier (CEO)
RevenueIncrease £203.7 million (2021)[1]
Decrease £3.5 million (2021)[1]
Decrease £(7.1) million (2021)[1]
Number of employees
2,000 (2022)[2]
ParentApex Group
Websitewww.sannegroup.com

History

Established in Jersey in 1988 to provide fiduciary services to private clients, Sanne started to work with corporate customers in 2003.[3]

Inflexion Private Equity supported Sanne's acquisition of State Street's corporate administration business and took a significant stake in Sanne in return for providing the funds in January 2013.[4]

Sanne was then the subject of an initial public offering on the London Stock Exchange in March 2015.[5] However, it attracted some criticism because it secretly signed up shareholders before announcing the floatation.[6] There was also some criticism that the company spent £11 million on the floatation.[7]

The company acquired Chartered Corporate Services, a Dublin-based business, in February 2016[8] and, more significantly, International Financial Services, a Mauritius-based business with $82 billion of assets under management,[9] in December 2016.[3][10] Then in September 2017, it bought Luxembourg Investment Solutions and Compliance Partners on an earn-out basis.[11] The rising volume of regulation also drove expansion.[12]

Following these acquisitions and some subsequent organic expansion, the company's growth rate was described by Investors Chronicle in March 2018 as "explosive".[13]

The succession planning arrangements attracted some criticism when the departure of Dean Godwin as Chief Executive was announced in January 2019 just 12 months after Spencer Daley left his post as chief financial officer; the news unsettled the market, as Godwin and Daley had led the initial public offering, and the share price fell 18% in a day.[14] The company sold its private client business to JTC plc in March 2020.[15]

In the wake of the Covid 19 pandemic, the company has benefited from customers focusing on the management of existing portfolios rather than new fund raising.[16] Commentators suggested that the fact that the pandemic has so far had a minimal impact on client delivery made the company a "rare prospect of earnings resilience".[17]

In August 2021, the Bermuda-based company, Apex Group, made an offer to acquire the company at a price per share which valued the company at £1.5 billion.[18]

Operations

The company had approximately £500 billion of assets under administration as at 31 December 2021.[1]

References
  1. "Preliminary Results 2021" (PDF). Sanne Group. Retrieved 7 April 2022.
  2. "Sanne - Our Company". www.sannegroup.com. Retrieved 17 February 2022.
  3. "Jersey's Sanne Group to acquire Mauritius-based IFS for US$127.3m". International Investment. 1 December 2016. Retrieved 4 March 2017.
  4. "State Street Sells Capital Markets Corporate Administration Business to Sanne". Global Custodian. 28 January 2013. Retrieved 4 September 2020.
  5. "Inflexion makes 3.7x on Sanne Group IPO". Real Deals. 27 March 2015. Retrieved 4 March 2017.
  6. "Sanne Group takes undercover route to flotation". The Times. 27 March 2015. Retrieved 4 September 2020.
  7. "Sanne Group spent £11 milliin on float, has performed well since". Global Capital. 27 August 2015.
  8. "Sanne Group to buy Dublin-based Chartered Corporate Services". Digital Look. 11 February 2016. Retrieved 4 March 2017.
  9. "Jersey-based Sanne Group to acquire Mauritius fund administration business". S&P Global. 1 December 2016. Retrieved 4 September 2020.
  10. "Mauritius-based IFS bought for Rs 4.6 billion". Defimedia. 2 December 2016. Retrieved 4 September 2020.
  11. "Sanne Group To Buy Luxembourg Investment Solutions, Compliance Partners". RTT News. 29 September 2017. Retrieved 4 September 2020.
  12. "Sanne Group Thrives in a Rising Tide of Regulation". Barrons. 1 July 2017. Retrieved 4 September 2020.
  13. "Outsourcing demand boosts Sanne". Investors Chronicle. 22 March 2018. Retrieved 4 September 2020.
  14. "Sanne shares tumble as news chief executive to retire counters upbeat trading statement". Proactive Investors. 23 January 2019. Retrieved 4 September 2020.
  15. "Jersey's Sanne sells its private client business to JTC". International Investment. 17 March 2020. Retrieved 14 November 2020.
  16. "Sanne expects 'strong' first half earnings growth amid higher sales, margins". Shares Magazine. 28 July 2020. Retrieved 4 September 2020.
  17. "Sanne shines amid resilient claim". Investors Chronicle. 19 March 2020. Retrieved 4 September 2020.
  18. "UK's Sanne agrees to $2.07 billion takeover by Apex". Reuters. 25 August 2021. Retrieved 29 July 2022.
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