TMF Group has acquired an outstanding 49 percent of Custom House Global Fund Services, to become its sole owner.
This transaction is subject to regulatory clearance, but completion is expected by June 2014.
With the acquisition, TMF Group Fund Administration Services—which has offices in Rotterdam, Sydney, Geneva, Sofia and Malta—is aiming to expand into a growing alternative investment sector.
Within alternative investment, the firm is looking into sectors including private equity and real estate investment services, to the aim of offering the industry the choice of a non-conflicted, independent and global partner for fund administration services and solutions across the middle and back office.
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."
"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 Services CEO, Mark Hedderman, said that TMF Group clients would benefit from the addition of alternative fund services to its suite of capabilities, whilst Custom House would be able to act seamlessly across borders for its clients to support new fund launches and global initiatives.
“With TMF Group's institutional infrastructure and reach, we can create a true global leader in alternative financial investment services, particularly in the US. Custom House will operate as a member of the TMF Group of companies, retaining the Custom House name."
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 team of executives.
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 locations with around $40 billion AUA.
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