TMF Group has agreed to take the full of control of Custom House Global Fund Services by purchasing the remaining 49% stake in the firm.
As part of the deal, Dermot Butler, the founder of Custom House will become president of TMF Custom House Global Fund Services, while Hedderman will remain as CEO along with the key team of executives.
TMF Group’s newly combined Fund Administration Services, including TMF Custom House, will now operate from 14 global locations with nearly US$40 billion of assets under administration.
The transaction, which is subject to regulatory clearance, is expected to be completed by June 2014.
Through this acquisition, TMF Group will further expand its business into the growing alternative investment sector (including private equity and real estate investment services).
TMF Group will also offer the choice of a non-conflicted, independent and global partner for fund administration services and solutions to the industry.
Hugo Van Vredenburch, CEO of TMF Group, said: "Our extensive corporate and financial institutional network in combination with Custom House’s leading-edge fund administration services will enable both companies to expand significantly in new and existing market segments."
Mark Hedderman, CEO of Custom House Global Fund Service, added: "This deal recognizes the work of Custom House and allows us to continue to operate and deliver the same level and standard of services as always, but with the backing of a global institutional owner.
"TMF Group clients will benefit from the addition of alternative fund services to its suite of capabilities, while we will be able to act seamlessly across borders for our clients to support new fund launches and global initiatives.
"With TMF Group’s institutional infrastructure and reach, we can create a true global leader in alternative financial investment services, particularly in the US. Custom House will operate as a member of the TMF Group of companies, retaining the Custom House name."