One of the island’s corporate service providers has announced a management buyout.

The dramatic business development is part of a planned leadership process.

The MBO is part of a planned leadership succession process at SMP Group Limited, based at Clinch’s House, Lord Street, Douglas, and is subject to regulatory approval.

The corporate, trust, and professional services provider was created in 2007 through a management buyout from Fortis Intertrust.

Under new management it grew into an international provider with more than 200 staff spanning seven global offices with an unbroken record of financial success.

During 2018, a plan was established to ensure continuity for the business, its employees, and clients.

The culmination of that plan is what is known as a secondary MBO and the appointment of a new group chief executive, David Hudson.

[In a secondary buyout, a financial sponsor or private equity firm sells its investment in a company to another financial sponsor or private equity firm, thereby ending its involvement with the company.]

Mark Denton, who was group managing director, is due to leave the company later this year.

Formerly the group business development director, Mr Hudson has been on the board since 2011 and has been one of the driving forces behind the business’ annual growth.

Mr Hudson said: ’This next step in the story of SMP is about two things: continuity and opportunity. In the many areas in which we excel, our clients, employees, and suppliers can expect continuity from board members who have been pivotal to our past successes.

’In the areas where we can still break new ground, we will continue to create and seize opportunities with the professional energy and creativity for which we have long been known.

’The backing we have secured gives us the opportunity to further invest in our people, culture and brand and will facilitate a more aggressive growth strategy that harnesses the inherent skills and capabilities of our highly talented team.’

Other additions to the group board following regulatory approval include Anne Baggesen, Ian Begley, Daniel Cadamy and Ted Pepper.

Steve McGowan will remain as a nonexecutive director and Stephen Turner continues as chief executive of the Caribbean Region, who along with Mr Hudson, represent continuity from the previous generation.

Steve McGowan, who is also group chairman, said: ’We have built a business we can be extremely proud of, so I am beyond pleased to see it pass to talented leaders within the company who have been with us for a significant part of our journey.

’This will allow SMP to retain its distinctive character and offering in the marketplace.

’David is the ideal person to keep us moving along our unique path of success; we couldn’t be leaving the business in better hands.’

The buyout was undertaken with the support of Palatine Private Equity LLP, a UK midmarket private equity house, based in Manchester. Partner, Andy Lees said: ’SMP is a business with a visionary leadership team, an entrepreneurial culture, and really strong fundamentals.

’We believe it has huge potential both in its traditional markets and its emerging service offerings.

’We are looking forward to partnering with the team at this exciting stage in the company’s growth.’

Group chief executive David Hudson with chairman Steve McGowan