TMF Group has acquired 49 percent and become the sole owner of Custom House Global Fund Services. The transaction is subject to regulatory clearance, but is expected to be completed by June 2014.
TMF Group’s fund administration business has offices in Rotterdam, Sydney, Geneva, Sofia and Malta. The acquisition of Custom House’s business allows TMF Group to further expand its business into the growing alternative investment sector (including private equity and real estate investment services).
TMF Group CEO Hugo Van Vredenburch said: “This is a unique and strategic proposition in today’s hedge fund administration landscape. As a global, independent and wholly-owned financial services firm we will continue to harness the innovative spirit of Custom House that was created by Dermot Butler in 1989."
"We are excited to take the entrepreneurial, dynamic, and client-focused attitude of Custom House and combine that with the backing of TMF Group. 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.”
Custom House Global Fund Service CEO, Mark Hedderman, said: “TMF Group clients will benefit from the addition of alternative fund services to its suite of capabilities, whilst we will be able to act seamlessly across borders for our clients to support new fund launches and global initiatives.”
Dermot Butler, the founder of the company, will become president of TMF Custom House Global Fund Services, stepping down from his role as chairman. Mark Hedderman will remain as CEO along with the key team of executives that have been dedicated to building out Custom House over the past 10 years.
TMF Custom House Global Fund Services president, Dermot Butler, said: “As the alternative fund administration sector continues to evolve, the team at Custom House has worked deliberately over the past 25 years to expand both its administration offerings and middle office solutions, culminating in the launch of the gateway platform in the US last year. Our choice of partnership with TMF Group also reflects our anticipation of market demand and the benefits to fund managers of the choice of an independent, global fund administration solutions provider with no conflicts of interest.”
TMF Group’s newly combined fund administration services, including TMF Custom House, will now operate from 14 global locations with around $40 billion AUM.
