FundBPO, a specialist third party administrator for the financial services industry and part of the MainstreamBPO, has acquired the Asia-Pacific hedge fund administration business of Alter Domus, a fund and corporate services provider for alternative investment funds and multinational corporations for $1m.
As part of the deal, the business will be integrated into FundBPO’s existing Hong Kong and Singapore operations.
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The acquisition is part of MainstreamBPO’s growth strategy of expanding its operational footprint, particularly in the Asia-Pacific region.
The deal will see Alter Domus staff members moving to FundBPO, which will recruit additional staff to support operations.
Also, client contracts have been shifted, including transfer agency, net asset value calculations, fund accounting and middle office services for the relevant hedge funds.
The deal, which is scheduled to be completed by the end of 2015, is expected to generate about $1m in revenue for MainstreamBPO annually.
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By GlobalDataThe initial purchase price has been funded with proceeds from the IPO. The sale marks Alter Domus’ exit from the hedge fund administration market in Asia to focus on its core business, MainstreamBPO said.
FundBPO CEO Martin Smith said: "We have conducted our trademark ‘lift and shift’ of Alter Domus’s hedge fund operations, whereby the existing fund administration staff and technology have been redeployed into our business, providing service continuity to clients and their investors."
Alter Domus CEO Laurent Vanderweyen said: "For some time Alter Domus searched for a suitable expert hedge fund administrator to take over and rise to the challenge of meeting the current and future needs of our existing hedge fund clients."
"We are confident that we have succeeded in finding the right candidate in FundBPO. All due diligence was completed with no concerns and the transition of client data and staff to FundBPO has run smoothly."
