BISYS, the fund administration outsourcing provider, announced today that it had acquired New York-based DML Fund Services Group, a provider of accounting, administration, advisory, and tax services to the private equity sector. “This acquisition supports BISYS’ strategy to provide the investment management community with outsourcing solutions for all asset classes, and follows BISYS’ March acquisition of the Hemisphere companies, one of the largest global hedge fund administrators,” explains BISYS.
DML started servicing private equity funds in 1993, and today has relationships with 40 sponsors around the world administering over 200 funds with aggregate committed capital of more than $24 billion. DML supports a broad range of private equity funds, including buy-out, venture, real estate, mezzanine debt, fund of funds, co-investment, employee plans, and carried interest plans.
“Combining DML’s private equity fund services with BISYS’ mutual fund and hedge fund solutions generates the broadest suite of investment services available from a single provider, “says Lynn Mangum, chairman and chief executive officer of BISYS. “Alternative investments have become an active and innovative arena for global asset managers, and supporting private equity funds with world-class administrative, accounting, and tax services represents a significant growth opportunity for BISYS. While venture capital and buy-out funds have historically dominated the private equity marketplace, affluent investors now demand new investment vehicles, such as fund of fund structures, which require DML’s administrative expertise.”
Norman Leben and Steven Millner, founders and co-managing partners of DML, will now serve as managing directors of the resulting BISYS business unit. “We recognize the tremendous opportunity to expand DML’s global reach through BISYS’ international locations and presence,” says Leben. “We also welcome the opportunity to enhance our existing client relationships while attracting significant new domestic clients by leveraging our respective expertise and technology platforms, and our shared commitment to service.”
Millner added: “In addition to our firms’ complementary products and services, we also share the strategic commitment to support the specific needs of our diverse clients with customized solutions rather than a ‘one size fits all’ approach. This shared philosophy and the diversity of our clients have positioned both BISYS and DML at the forefront of product, service, and technological innovation.”
Terms of the transaction were not disclosed.