MainstreamBPO (ASX:MAI), one of the largest independent fund administrators in Australia, announced that has executed an agreement to acquire the New York-based privately held hedge fund administration business Fundadministration Inc.
Fundadministration is a New York based full-service fund administration firm that works with emerging and established hedge fund managers, registered investment advisers and traders. The firm administers 140 funds for 45 clients with funds under administration (FUA) of USD $5 billion.
When the acquisition is completed, all of Fundadministration’s existing staff will join MainstreamBPO with Fundadministration CEO, Denise DePaola, to join the Group’s executive team and become the CEO of MainstreamBPO’s US operations.
Current owners, who are all Fundadministration staff, will become MAI shareholders and assume management of MainstreamBPO’s US expansion.
Transaction To Be Completed On 30 September
The transaction, which is expected to be completed 30 September 2016, is consistent with MainstreamBPO’s growth strategy of expanding into key international fund administration markets following the success of its operations in Hong Kong and Singapore, the company said in a disclosure to the Australian Securities Exchange (ASX).
“The Board considers Fundadministration’s two New York offices in Ronkonkoma (Long Island) and Purchase to be well placed to capitalise on growth opportunities for the Group in the world’s largest hedge fund market,” MainstreamBPO disclosed.
In addition to Fundadministration’s anticipated material contribution to the Group’s expected revenue, further revenue uplift is likely through the expanded service platform and distribution capability of the combined businesses across North America, the Caribbean and Asia, the company added.
A Milestone for MainstreamBPO
“This is a milestone transaction for our Company with substantial strategic benefits for both parties. We are pleased that Denise and her team will join us to grow and increase our hedge fund services. There are strong synergies and like-minded values between our businesses with each focused on delivering high client service levels to our clients,” MainstreamBPO Chairman and Managing Director Byram Johnston OAM said.
For this part, Fundadministration CEO Denise DePaola said joining the MainstreamBPO family will allow both companies to be able to accomplish amazing things.
“I see this partnership as an opportunity for us to provide greater stability, growth and value added services to our clients and our team,” DePaola said. – BusinessNewsAsia.com