Australian fund administrator MainstreamBPO has acquired the European hedge fund administration business of Alter Domus for an undisclosed amount.
MainstreamBPO has executed this takeover deal through its subsidiary FundBPO (Malta).
The transaction follows the MainstreamBPO’s acquisition of Alter Domus’ hedge fund administration business in Hong Kong in 2015.
MainstreamBPO said that the deal includes a number of long term client contracts for fund administration services provided out of Malta, including net asset value (NAV) calculations and fund accounting, to European domiciled hedge funds.
The associated annualised revenue of up to A$1m will be recurring revenue from monthly service fees, which the company expect to increase over time.
MainstreamBPO is expecting the deal to positively impact its FY18 revenue and earnings.
Commenting on the acquisition, FundBPO CEO Martin Smith said the group had a successful track record of integrating Alter Domus’ hedge fund administration business into its existing operations.
“Today’s announcement extends the scale of our fund expertise and capability in Australia, Asia and the United States to European compliant funds. We are pleased to be working closely with Alter Domus again to build on the success of our purchase of their h edge fund administration business in Hong Kong last year. ” Smith said.
Subject to the issue of a Recognition Certification from the Malta Financial Services Authority (MFSA) to act as a Fund Administrator in Malta, the transaction is expected to be completed by 15 January 2017.