Management Buyout of Anglo Irish Trust Company Limited

On the 21st December 2006 the management of Anglo Irish Trust Company Limited (AITCL) completed the largest management buyout (MBO) of a corporate service provider based in the Isle of Man. The deal size was £33m with the management team securing a majority equity stake.

AITCL was owned by Anglo Irish Bank Corporation plc (the Bank), Ireland’s third largest bank, who acquired the Ernst & Young Isle of Man trust and corporate service company (EYTCL) in 2002. Following a strategic review, the Bank decided that after four years of continuous growth the potential for the trust company was best maximised outside their existing banking structure.

AITCL is one of the Isle of Man’s largest and most profitable corporate service providers and acquisition of the business was therefore a highly attractive proposition for many financial institutions both on and off Island.

The AITCL management team decided that the interests of existing clients and employees, and the future development of the company, were best suited by an MBO, providing continuity and stability, and retaining the knowledge and market experience of the original E&Y team as well as that developed in the four years with Anglo.

AITCL has confirmed that it is very much “business as usual” and that there will be no changes to daily operations, staffing or the existing management structure. The management team consists of: Sheila Dean (Managing Director), Anthony O’Mahony (Finance Director), Tina Rawlinson, Maxine Mayhew, Aidan Davin, Steve Gray, Sarah Ingrassia and Katherine Ellis.

In addition to the management team, further continuity and experience is provided by two of the former E&Y partners. Larry Kearns, formerly the managing director of EYTCL, will continue as non-executive chairman. Pauline Doyle will continue in her role as a Director. In addition, Barry Smith will continue in his role as Legal Director of AITCL.

The AITCL management team with Larry Kearns, advised by Deloitte Corporate Finance, London, selected ISIS as equity partners. Sheila Dean, managing director of AITCL, said: “We were delighted to select ISIS as our preferred partner for the future development of the business. We were impressed with their market knowledge and enthusiasm. Their professionalism allowed us to complete the MBO on the 21st December, only five weeks after we appointed them, a remarkable achievement.”

Commented Shani Zindel of ISIS: “We were very impressed with the dynamic management team that runs the business. The quality of service and entrepreneurial culture that runs through AITCL, along with the numerous opportunities that the Isle of Man has developed, made this a highly attractive investment opportunity. We are very excited about the future for AITCL.”

The Senior Debt funding was provided by RBS International. Victoria McEneaney, Regional Director on the Island for RBS International said: "The management team of AITCL are well known and highly regarded by RBS International and we are delighted to have been able to support them with this exciting opportunity. We are particularly pleased that their enthusiasm and commitment has been rewarded by the successful completion of the acquisition, which represents a key milestone for AITCL, RBS International locally and, importantly, for the Isle of Man. We wish all the team at AITCL every success and look forward to working with them in the further development of their business."

AITCL’s management team is enthusiastic about the future: “The MBO has enabled us to retain the expertise and international reputation which helped build one of the Isle of Man’s most successful and respected professional service companies. We look forward to developing our existing business and launching new services from what is acknowledged to be the leading and best regulated offshore financial services centre.”

In due course the company name will change and this will be announced when finalised.