MSC unveils ‘one-stop-shop’ trustee services with key takeover

MSC Group has announced the acquisition of Certane Corporate Trust, creating it says one of the largest full service corporate trust businesses in Australia.

The acquisition for the first time also brings a retail custody capability to MSC, alongside expanded debt capital markets expertise and client books covering security trusteeship, facility and escrow agency services.

Certane also manages “a large book of employee share plans”, according to MSC.

Combined, the newly merged business will oversee around $30 billion under management.

“The combined business will present a major alternative to longstanding incumbents in the trustee market, with services to appeal to both domestic and international fund and capital managers,” MSC said in a statement.

The firm boasts that the merger also creates “a powerful one-stop-shop for complementary corporate trust, custody, security trustee and agency, registry and fund administration services”.

Matthew Fletcher, managing director of MSC Group, said the “highly complementary” merger of Certane into MSC Group “represents the final step in creating a full service corporate trust offering”.

“We know both local and international clients are highly attracted to the combined offering of corporate trust, fund registry, administration and custody services.”

“This acquisition brings an incredibly loyal and capable custody team into our business, plus a genuine footprint in both Melbourne and Sydney.

Fletcher notes that competition in the Australian custody space has retreated in recent years, with the exit of the Australian banks as well as major global depository and custodial businesses such as HSBC, JP Morgan and Citi Group.

“The non-global, stand-alone, local custodial market now comprises only two players: Certane and Sandhurst Trustees (owned by regional Bendigo Adelaide Bank).”

This situation, he added, provides a “substantial opportunity for our business to take market share for custody services on both a stand-alone basis and also as a leverage point for our core and higher margin corporate trust business”.

“We believe the business will benefit immensely with more stable, aligned ownership and strategic direction in a market with limited competition.”

Certane, formerly trading as AET Corporate Trust, is part of Australian Executor Trustees, one of the country’s largest non-government providers of professional trustee services.

Established in 2012 as Melbourne Securities Corporation, MSC Group’s core business, MSC Trustees, has expanded from its roots in emerging and wholesale mid-market funds, to include corporate trustee services covering notes, bonds and debentures, retail and registered funds and responsible entity roles, as well as a more recent addition of institutional and global clients.