InterFinancial supports DDH Graham to complete cross-border corporate lift-out
25.3.2024Established in 1981, DDH Graham offers a wide range of investment products and services including cash management accounts, a variety of managed funds as well as super and non-super administration capabilities. With the leader of its administration business transitioning into retirement and increased regulation and market consolidation, DDH sought to explore options for potential partners for its administration business.
Strategic Options Analysis identifies strategic partner
DDH approached InterFinancial to support and, led by Mark Steinhardt, we began by carrying out a Strategic Options Analysis. This involved first understanding the shareholders’ objectives and must-haves, then carrying out a market sounding which included gathering direct feedback from market participants. Following these two stages, we mapped out the key value drivers of the business and identified key risks and mitigation strategies.
SS&C, a global provider of services and software including to Australia’s financial services and superannuation industries, was already a supplier of their software to DDH. Through InterFinancial’s Strategic Options Analysis process, it was agreed that SS&C was the logical strategic partner for DDH to move forward with. SS&C are proactively growing in the Australian market with a unique offering that matched DDH, and their software has wide reaching benefits for DDH’s clients and employees through automation.
Overcoming complexities with innovative business structure
Mark Steinhardt, Executive Director InterFinancial, says, “Once DDH decided to move forward with SS&C, we helped them navigate the needs of multiple stakeholders. This included shareholders, software providers, customers, trustees and employees.”
“With a deep understanding of all parties’ objectives, we were able to put forward an innovative business structure and move the process through to completion,” says Mark.
The outcome is a long-term agreement that will see DDH leveraging SS&C’s skilled financial administration and technology resources on a sub-contracting basis to further expand its superannuation and managed funds business.
The agreement with SS&C does not impact the DDH cash management business, or interests in Australian Moneymarket and Acclaim Wealth.
DDH Executive Chairman Ugo Di Girolamo says about the deal, “While our DDH Money Market business remains unchanged and is not part of these arrangements, the opportunity to align with a superannuation and managed funds administration organisation such as SS&C is a significant one.
“The ability to scale and gain access to leading financial technology will expand our range of opportunities to service customers in a changing industry.”
“InterFinancial played a huge role in getting this agreement across the line. Mark and Sharon rolled up their sleeves to quickly understand the complex stakeholder environment and, through hard work and perseverance, navigated us through.” he said.
“We couldn’t have done it without them.”
Read the full announcement on the SS&C website here.
