A&O and Herbies advise on Man Group’s Citi outsourcing deal

Allen & Overy (A&O) and Herbert Smith have taken the mandates on a landmark outsourcing deal between Man Group and Citibank’s specialised outsourcing arm.

Claire Wright
Claire Wright

Herbert Smith advised Man Group on the deal, which marks the first time the fund manager has outsourced its services. Outsourcing partner Nick Pantlin and funds partner Tim West led the on the transaction.

Citi turned to A&O, which fielded a team led by corporate partner Claire Wright.

The deal involves the outsourcing of Man’s global shareholder and transfer agency services to Citi Global Transaction Services’ Securities and Fund Services division. It will also see Man’s Irish-based corporate services group transfer to Citi, with staff transferring on a Transfer of Undertakings (Protection of Employment) or TUPE arrangement.

Citi will also develop a new IT system, with Man continuing to run the platform until it is completed.

Pantlin commented: “The deal has an innovative structure and was particularly complex, given the existing arrangements across some 400 funds.”

Herbert Smith worked alongside Man’s in-house legal team, which included senior lawyers Chris Pyper and Alex Williamson.

Pantlin added: “It was a pleasure to work so closely with such dedicated legal, commercial and operational teams from Man based in London, Switzerland and Dublin on this landmark transaction.”

Irish law advice came from Matheson Ormsby Prentice for Citi and William Fry for the Man Group. The firms advised on local real estate and employment issues.