Australian Stock Exchange-listed fund administration provider MainstreamBPO Limited group has announced to the ASX the execution of an agreement to acquire New York based hedge fund administration business Fundadministration, Inc.
The acquisition is part of Australian based MainstreamBPO’s growth strategy of expanding into key fund services markets, with New York seen as the ideal location to grow the combined business in North America and the Caribbean. These markets account for US $2.3 trillion in hedge fund manager assets, representing 60% of the world’s hedge fund managers. The company opened an office in New York in July this year with the specific aim of growing its hedge fund administration business.
MainstreamBPO already has successful hedge fund operations in Hong Kong, Singapore and Sydney. The acquisition will allow the group to better support clients looking to establish cross-border investment strategies in Asia or the US. The transaction is expected to increase the group’s total FUA to AUD $94 billion.
A smooth integration is expected between the two entities given they both use PFS-PAXUS technology and offer comparable services that streamline fund operations and help reduce operational risks for hedge fund managers.