STP Investment Services (STP), a global, end-to-end investment operations service provider that supports more than $340 billion in total assets, has acquired third-party fund administrator Tower Fund Services (Tower).
The deal substantially increases STP’s alternative fund administration value proposition for its clients, while simultaneously delivering Tower clients an enhanced service experience and future-ready financial technology.
Based in Oceanport, NJ, Tower provides an outsourced solution for alternative investment managers and family offices, offering fund administration to private equity funds, cryptocurrency funds, hedge funds, venture capital, fund of funds, real estate, and direct lending funds.
“This acquisition will bring additional clients and funds to STP, allowing us to be more intentional about growing our fund administration business across all asset classes and funds,” said STP Chief Executive Officer Patrick Murray. “By combining Tower’s services along with our innovative technology and high-touch approach, we will deepen our existing capabilities. This is an exciting opportunity within the broader fund space for us to do what we do best at STP, which is to improve operations and the client experience through technology, more streamlined functionality, and proven expertise.”
As alternative investing has become increasingly popular, the acquisition of Tower strengthens STP’s position in the alternative investing space. The acquisition allows STP to bring its award-winning operational services and technology to the fund managers who need them. STP will continue to heavily invest in technology solutions for fund managers including further enhancing its automated fund subscription solution.
Through cloud-based outsourced trading, compliance services, and automated subscription processes, Tower Fund Services clients will enjoy quicker access to data and workflows in an advanced technology and operations ecosystem -- the hallmarks of STP. Tower Co-Founders Vincent Sarullo and Kinjal Amin will help guide the successful integration of the business into STP and will offer their extensive expertise and leadership experience to the process, ensuring a smooth transition.
“As we evaluated the merits of various partnership opportunities, we were drawn to STP’s strong culture, world-class technology and unwavering dedication to client service,” Mr. Sarullo said. “Our success in the fund administration arena strengthens STP’s capabilities here and the synergies are palpable. And for Tower clients, STP’s BluePrint platform and operational service will bring efficiencies that will drive a greater client experience. The joining of our two firms together benefits our collective clients, as well as our teams, and we look forward to this exciting new chapter for our business.”
STP will actively and opportunistically pursue mergers and acquisitions that will advance the organization’s commitment to augmenting its global offering, in keeping with the strong culture and ethos of client service already in place.
Earlier this year, STP added long-time veteran alternative investment outsourcer Jim Cass, previously a Senior Vice President and Managing Director at SEI, as a board advisor to help guide STP in this area. Mr. Cass was a part of SEI for nearly 30 years before he founded Hidden Crest LLC, an alternative investment services consulting firm. In this role at STP, Mr. Cass will provide organizational and strategic planning; counsel on existing products and services as well as potential opportunities; coaching and mentorship to senior leadership; and review and support regarding any possible merger and acquisition activity.
“With first-hand experience in helping SEI grow over the decades while I was there, I know what STP is capable of becoming in the alternative fund outsourcing arena and look forward to guiding them there,” Mr. Cass said. “The acquisition of Tower Fund Services and gaining these additional capabilities such as cryptoasset funds is a great step in that direction.”