Investment operations service provider STP Investment Services has acquired US-based third-party fund administrator Tower Fund Services.
The deal, whose financial terms have been not disclosed, ramps up STP’s alternative fund administration value proposition for its clients.
Tower offers an outsourced solution for alternative investment managers and family offices. This solution enables fund administration for cryptocurrency funds, private equity funds, venture capital, hedge funds, real estate, fund of funds, and direct lending funds.
STP CEO Patrick Murray said: “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.”
The deal will enable STP to expand its operational services and technology to more fund managers and strengthens its space in the investing space.
Tower co-founders Vincent Sarullo and Kinjal Amin will lead the integration of the business into STP and ensure a smooth transition.
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The clients of Tower will have access to STP’s technology and operations ecosystem.
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.”
Meanwhile, STP is planning to actively pursue mergers and acquisitions opportunities to bolster its global offering.
The firm will also continue to invest in technology solutions for fund managers, including in the further development of its automated fund subscription solution.
It recently hired ex- SEI senior vice president and managing director Jim Cass to as a board advisor to help with its plans.
Commenting on the deal, Cass said. “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.
“The acquisition of Tower Fund Services and gaining these additional capabilities such as cryptoasset funds is a great step in that direction.”
Last year, STP bought Accusource – an investment operations firm focused on the investment management sector.