Escrow & Security Services

As a regulated Jersey trust and corporate services provider, we act as an independent escrow agent and security trustee for transactions worldwide. We protect your assets, reduce counterparty risk, and provide confidence that your deal will complete exactly as agreed.

Trusted. Neutral. Secure.

Drawing on our history and experience, we can act as security/escrow agent for your transactional needs; acting as an independent third party and mitigating risk during, for example, acquisitions of companies and other assets, or for contractual purposes (for example, in syndicated loans).

What is ‘Escrow’?

Escrow and security services are used when there is a need for a trusted neutral party (the ‘escrow agent’ or ‘security trustee’) to hold assets or protect interests of the other parties. This reduces counter-party risk and provides assurances to all parties that the terms of an agreement will be honoured. Typically, the service is used during mergers and acquisitions, as part of capital raising arrangements or during asset sales/leasebacks. In these circumstances, Fiduchi will receive assets under the terms of an escrow agreement, keep these assets safe and then release them once the terms and conditions of the agreement have been met.

Example services

The situations in which a security trustee or escrow agent is required to act can range from the simple ‘proof of funds’ deposit account to very bespoke detailed arrangements. Our expertise allows us to offer a wide range of services in this area. Common examples would be:

During mergers and acquisitions or asset sales where funds must be released as per an agreed sequence or upon the occurrence of certain events;
During corporate finance/capital raising transactions, as per the case study below;
As a neutral party under a joint venture (e.g. holding proceeds before they are divided according to the JVA);
Wire transfer and ‘good faith’ or indemnity deposits;
Asset securitisation – for instance where shares in an SPV might be held by Fiduchi as ‘share trustee’;
As part of the process of litigation or arbitration awards.

Case Study - How Fiduchi can help

Fiduchi was approached by a UK corporate that had an existing bond listed on the Frankfurt Stock Exchange. In order to make this bond more attractive to potential investors, the company decided to securitise it against the value of its book debts; creating a charge in favour of all present and future holders of the bond.

In order to protect the interests of the bond holders, Fiduchi was appointed as security trustee with the obligation (should it ever become necessary) to enforce the security in favour of the bondholders as per the terms set out in the security agreement and the bond instrument.

In this way, the company has created a clear and marketable benefit to its bondholders – evidencing that they can rely on a trusted fiduciary in a well-regarded jurisdiction to uphold their rights.