Bregal Sagemount has agreed to make a strategic growth investment in ATOZ Services, becoming the majority shareholder of the Luxembourg-based fund services platform. ATOZ Group and existing investor ICG will retain minority interests following the transaction.
The investment remains subject to regulatory approvals and customary closing conditions.
ATOZ Services plans to use the partnership to expand internationally, enter additional jurisdictions, broaden its service offerings and increase its investment in artificial intelligence.
Founded in 2018 as part of ATOZ Group, the company provides fund-linked special purpose vehicle services, fund administration and governance, risk and compliance support.
Fund-linked special purpose vehicles are legal entities commonly used by private market managers to hold investments, obtain financing or separate assets and liabilities within a broader fund structure.
ATOZ Services works with more than 800 private equity, private credit and real estate clients. The company has developed relationships with alternative investment managers by supporting complex fund structures and regulatory requirements.
The business initially focused on fund-linked special purpose vehicles but has expanded its regulated fund administration capabilities and governance, risk and compliance services. It has also established a client-facing presence in the United Kingdom.
Sagemount’s investment is intended to support both organic expansion and ATOZ Services’ acquisition strategy. Planned initiatives include using AI to improve internal processes and client services, entering new geographic markets and adding capabilities across the fund lifecycle.
The company employs nearly 300 people across Luxembourg, Morocco and the United Kingdom. Its broader service offering includes corporate administration, domiciliation, accounting, tax reporting and fund administration.
ATOZ Services will also continue working with ATOZ Group, which operates ATOZ Tax Advisers and provides tax and corporate finance services in Luxembourg.
ICG will remain an investor after supporting ATOZ Services through a period of service expansion and international growth. ICG manages approximately $126 billion in assets across structured capital, private equity secondaries, private debt, credit and real assets.
Bregal Sagemount has raised approximately $11 billion since its founding and is currently investing from its $3.7 billion fifth fund. The growth-focused investment firm has backed more than 90 companies across software, financial services, data, healthcare technology and other sectors.
Goodwin Procter is serving as legal counsel to Sagemount. Baird is ATOZ Services’ exclusive financial advisor, while A&O Shearman is providing legal counsel to the company.
KEY QUOTES:
“This investment marks an important milestone for ATOZ Services and builds on the platform we have developed over the past eight years as a standalone entity.”
“We are excited to partner with the Sagemount team as we continue investing in our people and AI, expanding into new markets and further strengthening the services we provide.”
Chafai Baihat, CEO of ATOZ Services
“ATOZ Services has built a differentiated position in the Luxembourg fund services market, with best-in-class retention and client advocacy that come from high-quality service.”
“We look forward to partnering with Chafai and the team to support ATOZ Services’ expansion across new markets and service lines, and to build on the strong platform they have created.”
Gene Yoon, Managing Partner at Bregal Sagemount
“We at Sagemount are thrilled to support Chafai and the broader senior team’s ambitions of scaling into a global leader in the category, underpinned by continued superior client service and bolstered AI investment.”
Gurmaan Bhatia, Principal at Bregal Sagemount
