State Street is expanding its global fund administration and alternative servicing capabilities with an agreement to acquire Jersey-based Mourant International Finance Administration (MIFA) in a cash transaction. Terms of the deal, which is expected to close in Q1 2010, were not disclosed.
With approximately $170 billion in assets under administration and 650 employees in locations including Dublin, Singapore and New York, MIFA specialises in the administration of alternative investment funds, such as private equity, real estate and hedge funds.
With the acquisition, State Street will expand its reach in Europe and Asia and broaden its capabilities for servicing investors' growing real estate administration requirements.
Jay Hooley, president and chief operating officer of State Street, comments: "As alternative asset classes have become more mainstream, our institutional customers plan to continue to expand their use of this asset class. This acquisition will bring a wider and more comprehensive product offering to our existing and new customers and further develop our servicing footprint in Europe and Asia where expanded capabilities."
State Street has steadily grown its capabilities in the alternative asset servicing segment of the global fund administration market over the last seven years, with a particular focus on hedge funds. In 2002, the company acquired International Fund Services (IFS), followed in 2007 by its acquisitions of both Investors Financial Services Corp. (IBT) and Palmeri Fund Administrators (PFA).
State Street's outsourcing operations received a further shot in the arm Monday when the firm announced that it had been appointed by Morgan Stanley Investment Management (MSIM) to provide investment manager operations outsourcing services for approximately $300 billion in assets.