Opalesque Industry Updates – Jumping up to $21bn in assets under administration, global operations, middle office and administration firm LaCrosse Global Fund Services announced its acquisition (subject to regulatory approval) of Bank of America Merrill Lynch global fund administration business on Monday. In addition to a significant increase in assets (prior to the acquisition LaCrosse assets were estimated between $15bn and $16bn), the firm will have 250 employees and will increase its global locations from nine to eleven (adding Jersey and Dublin). |
The increased European presence for the firm comes as many hedge fund managers are showing a fast interest in UCITS funds to target European investor assets. "In addition to bringing strong client relationships and a great team, this acquisition adds to our support capabilities for fund of funds and onshore European vehicles, including UCITS," LaCrosse's co-chief executive Stuart Feffer said.
2009 saw the merging of 7 administrators, the second highest yearly rate within the industry. So far in 2010 BNY Mellon acquired PNC Global Investing, pushing BNY to the number three spot in terms of assets under administration. Although the rate has slowed significantly in 2010, it is likely that more mergers and acquisitions will be announced in this space before the end of the year.
“We expect M&A activity in the fund administration space to continue 2010 as the established brands continue to solidify their positions and increasingly expand in their reach,” says Daniel Golyanov, Senior Analyst at research firm Carbon360, which publishes the 2010 Fund Administration Factbook.
Full press release available: Source