FundBPO has acquired Alter Domus’s hedge fund administration business in Hong Kong and Singapore for an initial purchase price of $1 million.
The acquisition is part of FundBPO's growth strategy, expanding its operational footprint, particularly in the Asia-Pacific region. It also supports the financial forecast laid out by FundBPO’s parent company, Mainstream BPO Limited, which was laid out in its initial public offering (IPO) earlier this year.
The initial purchase price was funded with proceeds from the IPO. A final figure is yet to be determined, and will be based on the number of acquired clients that choose to remain with FundBPO.
The sale marks Alter Domus’s exit from the hedge fund administration market in Asia, as it refocuses on its core business. Its hedge fund administration business will be integrated in to FundBPO’s existing Hong Kong and Singapore operations; both firms are located in the same Hong Kong building, and use the same technology platform.
Client contracts have been transferred, including transfer agency, net asset value calculations, fund accounting and middle office services for the relevant hedge funds. The Alter Domus hedge fund administration staff members have also transferred to FundBPO.
Martin Smith, CEO of FundBPO, said: “We have conducted our trademark ‘lift and shift’ of Alter Domus’s hedge fund operations, whereby the existing fund administration staff and technology have been redeployed into our business, providing service continuity to clients and their investors.”
CEO of Alter Domus Laurent Vanderweyen added: “For some time Alter Domus searched for a suitable expert hedge fund administrator to take over and rise to the challenge of meeting the current and future needs of our existing hedge fund clients.”
“We are confident that we have succeeded in finding the right candidate in FundBPO. All due diligence was completed with no concerns and the transition of client data and staff to FundBPO has run smoothly.”
The transaction is expected to be finalised by the end of 2015, and is predicted to generate about $1 million in revenue for MainstreamBPO annually.
