Butterfield Bank Profits From Merger of Fund Services Unit

Nick Parmee

16 September 2008

Butterfield Bank has completed the merger of its Bermuda-based and international fund services businesses with those of Fulcrum Group to form a new company, Butterfield Fulcrum Group. Butterfield will make a gain of approximately $115 million on the transaction in the third quarter of the current financial year.

The strategic agreement to merge Butterfield Fund Services and Fulcrum was announced on 5 August 2008; all required approvals have now been received and the transaction has been completed as planned.

3i, an existing shareholder in Fulcrum, also provided an investment to fund the merger. Jill Considine, previously chair of Fulcrum, will become chair of the BFG board.

Butterfield has retained an ownership interest in BFG of over 40 per cent on a fully diluted basis. Alan Thompson, president and chief executive officer, and Graham Brooks, executive vice president international at Butterfield, will be on the BFG board.

Butterfield Fulcrum ranks in the top ten among independent alternative asset fund administrators. It has approximately $100 billion in assets under administration from close to 1,000 funds and 400 employees in ten locations across nine countries.