Already boasting a global client base, legal and compliance data subscription platform, aosphere had scope to grow farther and faster with investment, including in the US. Addressing this had been a big aim for the carve-out, which Inflexion led as a strategic partnership with incumbent parent Allen & Overy, a magic circle law firm, and Endicott, a US financial sponsor, at the end of 2023.
It’s progressing according to plan, with its revenue growth belying the hard yards that typically accompany a carve-out. “In this first year we’ve really boosted the US and cross-selling focus, spending our time scaling our commercial operations,” recalls Marc-Henri Chamay, CEO and Co-Founder. “We’ve put a new structure in place and built out with dedicated sales, account management and other areas that had been lacking. We doubled the size of the commercial team including account management, revenue ops and sales people.”
Another game changer has been a significant acquisition, with aosphere entering the private banking and wealth management space through the acquisition of Switzerland-based BRP Bizzozero last year. “We’d never have managed this sort of purchase before independence. It had been on our radar for years, operating in parallel to us, then it came to market shortly after our transaction, so it took priority over other goals. Inflexion were very supportive when the opportunity came up.”
Today, the carve-out process is 95% complete, and the business is thriving. “We still grew revenues at double digits despite the transition, launched a new vertical in crypto, and completed a strategic acquisition,” says Marc-Henri. “In the final three months of the first year, we had some of our best growth ever – we’re now operating at full speed.”
If you’re successful within a larger firm, then a carve-out can often provide the best opportunity for a business. Marc-Henri had long recognised that the business required an infrastructure better suited to a product-based company rather than a more transactional law firm. “Over time, we were making compromises to stay within A&O,” he explains. “The environment wasn’t conducive to acquisitions, and as we scaled, the logical next step was independence.”
The timing was critical. “If you go independent too early, you lack scale, too late, and it compromises growth,” Marc-Henri notes. With 50 people and over 735 clients at the time of the carve-out – compared to just 20 people five years earlier – the business had reached the right stage to make the transition.
While carve-outs are a lot of work and investment, Marc-Henri points to the upside that they provide an opportunity to build from scratch something that is cutting edge – finance systems, HR and IT systems. “You don’t have this luxury as part of a large and established business. Inflexion were invaluable in advising us here, recommending systems for us to choose from and then the interims they’d put forward implementing them.”
Marc-Henri cautions firms considering a carve-out not to underestimate the disruption it will cause as he likens the process to a headwind. But it’s short-term pain for long-term gain: Marc-Henri recalls the first six months were toughest – though is quick to add the team ‘didn’t lose sleep’ owing to the supportive backers – and then aosphere started getting momentum.
Inflexion mitigated potential pain points by using its experience in carve-outs to be proactive about the challenging journey.
Marc-Henri Chamay, CEO and Co-Founder, aosphere
Indeed, it took just three to four weeks for aosphere to bring in interim heads for those workstreams. “That’s where the Inflexion network is very valuable: they know the right people with the right experience in carve-outs. Some of our interims have become permanent, for example the CFO and CHRO.”
Generative AI is a major area of investment for aosphere now. “It’s a no-brainer for us as it enhances our clients’ experience and improves internal efficiency,” says Marc-Henri. “For example, the marketing team of a fashion company needs to comply with global data privacy obligations and can ask our AI tool if they can send direct marketing to existing customers in Singapore. Our AI tool allows them to ask a natural-language question and receive an instant, clear answer, backed by data and references.”
Accuracy is critical for aosphere and selecting the right AI tools was not trivial. “Inflexion have introduced us to specialists who have been very helpful, including a highly experienced consultant who had worked with another Inflexion portfolio company to great effect,” Marc-Henri enthuses. It was a good match, and the consultant has proven to be a great support for this part of aosphere’s growth, getting proof of concept in less than six months and launch within 12 months. “Inflexion’s connections and expertise mean they can introduce a wonderfully valuable skilled person that is suitable for your company and drive it, rather than bring in a very large company which provides a very different service. Connecting with the right people helps you to avoid wasting time and makes projects more cost-effective. We’ll insource in time, but this external help means we can stay at the forefront of AI advancements.”
Following the launch of crypto shortly after the transaction, the business is about to enter another vertical with the launch of a cross-border lending product for the private credit market. More acquisitions may complement the organic efforts, and double-digit revenue growth is driven by a c. 50% increase in clients. “Inflexion’s level of expertise is something new for me; I am now challenged by people who really understand the space and what I want to achieve,” Marc-Henri concludes.
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