Panama Papers Row Fails To Deter Trust Buyers

Some of the world's biggest buyout firms are queuing up to buy a string of offshore trust administrators despite the escalating global furore about the leaked Panama Papers.

Sky News understands that Permira and TPG (Taiwan OTC: 6521.TWO - news) are among the private equity outfits which have expressed an interest in a takeover of TMF Group, which has been owned by rival Doughty Hanson since 2008.

The auction of TMF is being overseen by Goldman Sachs (NYSE: GS-PB - news) and is expected to command a price-tag of roughly £800m, according to bankers.

TMF is described by Doughty as "the world’s leading independent provider of corporate compliance outsourcing solutions".

The company merged in 2011 with Equity Trust, which offers "non-advisory trust and fiduciary services to multinational corporate clients, financial institutions, high net worth individuals and intermediaries".

The sale process is progressing despite the scandal surrounding Mossack Fonseca, the Panama-based law firm which was revealed to have helped to establish thousands of offshore companies for clients around the world.

Roughly 20 banks and asset managers have been asked by the Financial Conduct Authority, the City regulator, to provide details of their dealings with Mossack Fonseca.

The law firm, which has denied any wrongdoing, has insisted that the companies it helped to incorporate were legitimate entities for multinational and individual clients.

Nevertheless, the Panama Papers affair has shone a renewed spotlight on the legal activities undertaken by offshore administration firms in tax havens and elsewhere.

The services offered by firms such as TMF are highly lucrative and are drawing growing attention given the increased political backlash against tax avoidance by multinationals.

Sources said that TMF was a logical candidate to merge with Tricor Holdings, which is owned by Bank of East Asia and which has also engaged Goldman to explore a sale process.

Other trust administration services providers which are preparing to change owners include First Names Group, which has engaged Lazard to run an auction.

Permira and TPG declined to comment.