A management buyout of an arm of top offshore law firm Appleby is to go ahead, the firm has confirmed.

The move means the fiduciary and administration business, which has more than 320 staff, part of which is Bermuda-based, will be spun off in a deal backed by London-based international private equity firm Bridgepoint.

And a spokesman for Bridgepoint yesterday said the firm had plans to expand the business and the workforce.

Appleby partner and global group head of fiduciary Farah Ballands, who is based in Appleby’s Jersey office, will become chief executive of the independent fiduciary business, which provides a range of professional services.

She said: “With Bridgepoint’s support and expertise in growing businesses successfully, we will be able to develop a greater range of products and services for our clients.

“The Appleby Group has provided us with a solid foundation and enabled us to grow to the size, reach and scale that we enjoy today, but now is the right time to accelerate our growth plans.”

Bridgepoint partner and head of its financial services team William Paul added that the fiduciary business was “an exciting platform with a reputation for high-quality, client-centric services and the expertise to deal with the complex needs of its clients”.

He added: “It brings significant opportunity as a stand-alone business to accelerate its growth organically and via acquisition in what remains a strongly growing market.”

Appleby Group managing partner Michael O’Connell, who will continue to lead the law firm after the deal concludes, said: “The transaction will enable two strong businesses to grow and prosper independently, while remaining close where it suits the needs of clients.”

Neither side in the deal was prepared to disclose the cost of the buyout.

The deal, reported in the UK media to be worth around $370 million, covers the Appleby divisions covering corporate administration services, private client and trust business, back-office services for Bermuda-registered companies and trusts, and Bermuda Stock Exchange listing services.

The unit is also a significant player in the Island’s booming insurance-linked securities business.

Appleby chairman Frances Woo, who is based in Hong Kong, said: “Being able to respond to client needs by investing in the development of products and services for each business is a key part of our thinking here, coupled with providing essential continuity of service.

“With the existing management team taking the helm of the new fiduciary company this will ensure that existing clients feel it is very much business as usual.”

In Bermuda, the fiduciary arm is made up of Appleby Services (Bermuda) Ltd, Appleby Management (Bermuda) Ltd and Appleby Securities Ltd, according to the firm’s website.