Escrow services are predominantly used to mitigate a risk in a transaction. As an example, one party might be concerned that the other party may be unable to meet its obligations resulting in counterparty risk. Certain assets might therefore be held in escrow until one or both parties meet certain conditions. Another example might be where the parties might be comfortable with each other, however there is uncertainty as to the value of a certain part of the transaction resulting in price risk. The price differential facing uncertainty can be held in escrow until the actual performance can be ascertained at which point the cash can be released.
Typically assets are subsequently disbursed to one or more parties upon fulfillment of certain conditions as established in a written escrow agreement. As escrow agent, we are able to hold a variety of assets including:
- Cash
- Source Codes
- Designs
- Securities
- Financial Models
- Tradeable Commodities
Assets are held in escrow until one or both parties meet certain conditions. One Investment Group’s Corporate Trust business provides escrow services for a range of clients including leading global banks and ASX listed companies.
Escrow services can be used in a range of different situations including:
- Break fees in an acquisition
- Subscriptions in a capital raising
- Holdbacks or earnouts
- Deposits for performance guarantees
- Milestone payments
- Collection and distribution of proceeds
The escrow services provided by our Corporate Trust business can include:
- Receive and hold cash in escrow in accordance with the escrow agreement
- Open and maintain escrow bank accounts
- Store escrow assets in a safe and secure manner
- Release escrow assets in accordance with the terms of the escrow agreement
As part of the One Investment Group, we have access to a considerable range of resources, enabling our team to provide comprehensive solutions for our clients. Should you have a query about our escrow agent services, please contact us