IQ-EQ has signed an agreement to acquire the AMAL Group, a provider of corporate trust, agency services and loan servicing solutions with operations in Australia and New Zealand.
The acquisition supports IQ-EQ’s strategy to expand its global corporate trust and loan servicing business and enter into key new growth markets.
This transaction is announced subject to regulatory approval from the Foreign Investment Review Board (FIRB) in Australia.
The acquisition takes place against the backdrop of accelerated growth in Australia’s corporate trust market due to strong continued year on year double digit growth in the securitisation market driven by regional growth in the non-bank lender (non-ADIs) market. With superannuation assets projected for 2025 to total $4.1 trillion and $11.5 billion in alternative investment flows we’re witnessing a significant shift driven by increased allocations to alternative assets such as infrastructure, real estate, and private equity. As interest rates ease, private market fund managers are increasingly moving more into this market, with high single digit growth expected across real assets, private credit and private equity. These market conditions are causing demand to rise for sophisticated, end-to-end trustee and loan administration solutions.
AMAL Group has in excess of A$37 billion of funds under administration and supervision in Australia and New Zealand.
Commenting on the announcement, Mark Pesco (pictured), Group Chief Executive Officer at IQ-EQ said: “This investment marks a significant milestone in our global expansion strategy, with an exciting opportunity to secure an important presence in two key new markets and take ownership of a leading corporate trustee, agency services and administration business.
“The AMAL Group’s addressable market spans the four key reporting segments of trustees – securitisation, wholesale loans, funds, and managed investment trusts, each of which have unique market dynamics and client requirements. As the only scaled end-to-end provider of trustee services and loan administration in Australia and New Zealand, this positions us to grow our corporate trust and loan administration business in synergy, cross-selling into our global client base and servicing our existing global clients amid growing demand for services in these new markets,” he added.
Richard Surrency, Group Chief Commercial Officer at IQ-EQ added: “The AMAL Group brings deep client relationships, strong regulatory foundations, and market-recognised top-tier servicing capability to the table. Their highly experienced management team, full suite of licences, and proven technology infrastructure allows us to drive operational efficiencies, scale our offering, and accelerate growth across corporate trustee, loan administration and fund administration services. We’re particularly excited about the opportunity to build on its established track record in securitisation, and we hope to expand into adjacent areas over time.”
Chief Executive Officer of AMAL Trustees, Nick Procter further commented: “Being part of a dynamic global player like IQ-EQ is a terrific market development that will enable AMAL to better service its existing clients and offer new products and services to a wider variety of markets and strategies. This transaction is good for everyone; for both businesses, for our clients and for the expert team of people who will help drive a smooth integration, business growth and success. We’re excited about what we can offer the Australian market and can’t wait to get started together.”
Following approval from the FIRB, AMAL Group will be rebranded to IQ-EQ, and the newly combined global IQ-EQ team will total 6,000 with an operational presence across 27 jurisdictions globally.
The acquisition of AMAL Group includes AMAL Asset Management Limited, AMAL Corporate Holdings Pty Limited and their subsidiaries collectively. Former principals of AMAL Group, Nick Procter and Tony Grant will continue to lead the business and will join the senior leadership team of IQ-EQ Asia ensuring continuity of the day-to-day delivery of services.
Leading global financial services group Nomura acted as financial adviser to IQ-EQ on this transaction.
