Fund services provider Circle Partners has acquired ATC Fund Services’ operations in Curacao. The terms of the acquisition, including the price, were not disclosed.
ATC Fund Services’ Hong Kong operation, which is aligned with the capital markets, high net worth and wealth management divisions of ATC Group, will not be included in the transaction.
The Curacao-based fund services arm serves traditional hedge funds administration and family funds.
Kedi Chang, managing director, Fund Services, ATC said the two business are a good fit operationally. “Operationally we both use the same systems Linedata Mfact. Were both ISAE 3402 compliant and we service the same types of clients.”
It is understood that Circle was looking to expand into the US and needed a partner to do so. The company, which also specializes in corporate finance and fiduciary management, is present in the Netherlands and Bratislava and recently opened offices in Luxembourg.
Explaining the rational behind the deal for ATC, Chang says: “ATC Fund Services serves the hedge funds industry in general and was a small piece of the ATC Group. Following the group’s acquisition by HG Capital at the end of 2009 they refocused their core strategy on private and corporate clients and on capital markets. They streamlined their core business and did not want to further develop their fund services arm.”
Under its new owners, Chang explains that ATC Fund Services Curacao will be better placed to expand the business. “We are hoping to further expand in this region with a focus on the US and Latin American markets.”
The combined entity will have $5 billion of assets under administration. ATC Fund Services Curacao has just under $2 billion of assets under administration.
ATC Fund Services Curacao will remain intact operationally and its 12 employees will remain with the company under the new ownership. Chang confirmed there will be no immediate changes to the business. “We are currently assessing our operations to pick the best of both worlds,” she said.
(JDC)