Alternatives fund services provider Alter Domus has topped $1 trillion in assets under administration (AuA) after announcing a planned acquisition of Strata Fund Solutions.
The acquisition of the US private equity and venture capital funds administration firm will add $140 billion in AuA and over 200 accounting experts to Alter Domus’ ranks.
The deal also leaps Alter Domus to become one of the top three largest private asset servicers for US alternative asset managers.
“We are delighted to welcome Strata’s founders Jared, Darren, Nate and their entire talented team to Alter Domus. Our respective founders, leadership and teams share a culture of excellence devoted to the investment funds and corporate services industry,” said Doug Hart, CEO, Alter Domus.
“Our shared high-touch service model and advanced technology platforms align perfectly to offer our clients a trusted solution on day one.”
In a statement, the two firms said the combined business will leverage their in-house solutions CorPro, Agency360, Mailroom, and Virtual Back Office, as well as other third-party information processing engines such as Investran, eFront, Allvue, and Yardi.
The firm stated the strategic acquisition represents another milestone in its North American growth strategy, following the announcement of its acquisition of Boston-based IPS Fund Services last month.
Alter Domus also opened a Cayman Islands office to provide specialised local support in recordkeeping and compliance for clients’ global alternative investment portfolios.
The M&A deal is the third to be announced in the fund administration space in January, following similar moves by IQ-EQ and Sudrania Fund Services.
In October last year, Apex Group announced it had surpassed the $1 trillion AuA milestone with its acquisition of FundRock Management Company and FundRock Partners.