It looks like Carlyle Group will be purchasing Butterfield Fulcrum's shares owned by 3i.

Carlyle owns a significant stake in Butterfield Bank and had exposure through its 40% ownership of Butterfield Fulcrum but they clearly think it is a good time to purchase a larger stake in the fund administrator.

Is it because it is a well run business or is it because it is being sold for an attractive valuation? My guess is that it is the latter.

3i first bought Fulcrum and then Butterfield. The Fulcrum deal was very good for its owners who are rumoured to have walked away with $25m cash each at some of the highest multiples seen in the industry.

Had the purchase of Butterfield gone through a week later it would have triggered an escape clause such was the asset decline following Lehman.

3i weren't so fortunate.

Yours....

PH