Escrow Services & Fiducie
Our Escrow Services provide secure and adaptable solutions for businesses, ensuring transparency and trust in every transaction. From mergers and acquisitions to specialized Fiducie services for the French market, we offer tailor-made options that comply with regulatory requirements. Whether safeguarding funds or facilitating complex financial operations, our team delivers a seamless process designed to meet your specific needs.
Trust & Security: The two cornerstones of exceptional Escrow Services as a result of our wealth of experience and the acknowledged expertise of CREATRUST.
Seller’s Warranties / Indemnities for M&A deals
In M&A transactions, escrow services are used to hold a portion of the purchase price to cover potential breaches of the seller’s warranties or indemnities. The seller’s warranties are assurances regarding the condition of the business, and indemnities cover specific risks.
If the seller breaches these warranties or if post-transaction liabilities arise, the buyer can claim compensation from the escrowed funds. This provides both parties with security, ensuring that funds are available to cover any issues that may arise after the deal closes.
ALTRIUM’s touch: We offer unmatched security and efficiency, ensuring funds are available for claims without delays, and fostering confidence for both buyers and sellers.
Securing Funds / Proceeds
We secure funds in transactions, ensuring that the agreed-upon money is held safely until all conditions of the deal are met. For example, in an M&A transaction, the buyer may deposit the purchase price into an escrow account.
The funds remain there until both parties fulfill their obligations, after which the funds are released. This process protects both parties by ensuring the payment is only made once all terms are satisfied, reducing risks for both the buyer and the seller
ALTRIUM’s touch: With rigorous checks and advanced safeguards, we provide beneficiaries with peace of mind by ensuring that funds remain protectedand accessible only under agreed conditions.
Pre-Funding Requirements
In some transactions, pre-funding is required to deposit funds into an escrow account before the deal is finalized. This might apply to real estate deals, where the buyer pre-funds the escrow account to cover closing costs or deposits. In this context, we make sure that these funds are held securely and only used for the specified purpose, assuring both parties that the necessary funds are available and properly allocated.
ALTRIUM’s touch: Fully aware of the whole regulatory and compliance requirements, we tailor pre-funding solutions in full transparency, reducing risk and streamlining the transaction process for all stakeholders.
P to P Transactions
In Public to Private (P2P) transactions, escrow services play a crucial role by securely holding the acquisition funds provided by the private acquirer until all transaction conditions are met, such as shareholder approvals and regulatory clearances.
We ensure that funds are only released when the terms of the deal, including contingencies and compliance requirements, are fulfilled. This protects both the buyer and the seller, ensuring a smooth and secure transition from a public to a private company.
ALTRIUM’s touch: Our expertise in handling complex and high-value transactions, ensures secure fund transfers and strict adherence to legal and regulatory standards.
Segregating or Warehousing of Funds
We hold funds in separate accounts for specific purposes, ensuring they are used only for designated transactions. For instance, in a construction project, funds may be segregated to ensure they are used strictly for project phases.
This provides transparency and accountability, ensuring that the funds are not misused. Segregating funds is also useful in investment scenarios, where the funds are released only once certain conditions are met, protecting both the investor and the recipient.
ALTRIUM’s touch:
The regulation of CREATRUST and their experience enables us to deliver bespoke solutions for fund segregation, coupled with robust
tracking and reporting with full transparency.
Focus
With more than 20 years of experience, CREATRUST’s team provides the key regulatory and compliance credentials to handle the widest range of Escrow Services. The strong digital DNA is materialised through the Fund365 platform to create a smoother and more secure execution process.
A Fiducie is the French equivalent of an English law trust, where a company transfers ownership of specific assets, rights, or security interests to a trustee. Shares and cash can be transferred into a Fiducie, with the agreement outlining enforcement provisions, including how these assets may be transferred to the beneficiaries, such as lenders or bondholders.
The trustee holds these assets in a separate, segregated estate created solely for the purpose of the fiducie, until the obligations under the underlying financing agreement are fulfilled. The beneficiaries of the fiducie are typically the company (before any default), and after a default, the security agent representing the lenders or bondholders.
The Fiducie structure is advantageous because it transfers legal ownership of the assets to the trustee, ensuring they are segregated from the company’s general estate. This means that in the event of insolvency, the transferred assets are protected and excluded from the company’s insolvency proceedings, providing an additional layer of security for the beneficiaries.
Focus
ALTRIUM provides its Fiducie service in partnership with a management company fully regulated by the AMF.
From the onboarding stage of the Fiducie including the KYC process, the digital platform facilitates and secures the whole process in a single source of truth for all stakeholders.