Fund administration provider MainstreamBPO Limited group (ASX: MAI) has announced to the ASX the execution of an agreement to acquire New York based hedge fund administration business Fundadministration, Inc.
Fundadministration is a US full-service fund administration firm that works with emerging and established hedge fund managers, registered investment advisers and traders. The firm administers 140 funds for 45 clients with funds under administration (FUA) of USD $5 billion. All of Fundadministration’s existing staff will join MainstreamBPO with Fundadministration CEO, Denise DePaola, to join the Group’s executive team and become the CEO of MainstreamBPO’s US operations.
The acquisition is part of Australian based MainstreamBPO’s growth strategy of expanding into key fund services markets, with New York seen as the ideal location to grow the combined business in North America and the Caribbean. These markets account for US $2.3 trillion in hedge fund manager assets, representing 60% of the world’s hedge fund managers.
MainstreamBPO already has successful hedge fund operations in Hong Kong, Singapore and Sydney. The acquisition will allow the group to better support clients looking to establish cross-border investment strategies in Asia or the US. The transaction is expected to increase the group’s total FUA to AUD $94 billion.
A smooth integration is expected between the two entities given they both use PFS-PAXUS technology and offer comparable services that streamline fund operations and help reduce operational risks for hedge fund managers.
MainstreamBPO Chairman and Managing Director Byram Johnston OAM stated “We are pleased that Denise and her team will join us to grow and increase our hedge fund services. There are strong synergies and like-minded values between our businesses with each focused on delivering high client service levels to our clients.”
Commenting on the transaction, Fundadministration CEO, Denise DePaola, said “I see this partnership as an opportunity for us to provide greater stability, growth and value added services to our clients and our team. It is a real honor to join the MainstreamBPO family, together we will be able to accomplish amazing things.”