Fifteen years ago, Christine Waldron helped launched the fund administration business at U.S. Bancorp, and today her division supports $84 billion of alternative investment assets for investment managers. In addition to being inducted into the Global Custodian Securities Services Hall of Fame last week, Waldron’s efforts have led to U.S. Bancorp Fund Services’ most recent growth—Wednesday’s acquisition of Dublin-based hedge fund administrator Quintillion, providing the company with a gateway to Europe and $18 billion in hedge fund assets under administration.
What sparked the decision to acquire Quintillion?
CW: Strategically, U.S. Bancorp was looking to expand our offering in the Dublin market place, and Quinitillion was a great fit culturally—very similar client-service models and belief system, as well as operational model and technology. So we felt pretty strongly that it was a great opportunity for both firms. We also took a look at what our shared vision was for the future and felt it was also very compatible.
Joe Redwine, president of U.S. Bancorp Fund Services: It’s not really just the acquisition of the organization, but the acquisition of the talent within that organization, and that’s very, very important to us.
Joan Kehoe, chief executive officer of Quintillion: As Christine said, we’ve developed a very strong brand. We have a reputation for a very high quality service, and I think we are at a stage in our business where we started to want to leverage a bigger balance sheet, in light of everything that’s gone on with the regulatory changes and pressures that are put on independent administrators. So we really felt that it was the right time. It was really important that we found the right fit. So in picking U.S. Bancorp Fund Services, not only have we found a bigger balance sheet, which sounds a bit Machiavellian, but it’s hugely important in this day and age, and I think also we found an organization that we really believe in, and we know they believe in our model. So I think those synergies from a cultural and a service perspective were markedly important to both of us, and I think that’s really what drove this transaction.
How does the deal fit into your overall goals for the company and what do you expect the benefits to be?
CW: Certainly the benefits are a strong operating presence in Dublin, a strong brand recognition—Quintillion has a very strong brand recognition in the European space, one in which U.S. Bancorp Fund Services is hoping to leverage for the foreseeable future and it really fits in nicely in expanding our operating to be more in line with a full-service arm in the alternative investment space.
How will the acquisition fit into the company’s current fund administration operations?
CW: Because U.S. Bancorp does not have any current Dublin operations in the fund administration space, all staff will be staying [in Dublin]. Currently there is no shifting of staff or movement of staff in any way, shape or form for either organization.
Will there be any crossover at a management level?
CW: There are no plans and there is no crossover in terms of management at a senior level. Joan plans to be with the organization long term and oversee our European expansion opportunities.
What are your further expansion goals?
CW: In terms of expansion, it’s really rounding out our service offering, expanding our service offering to include more jurisdictional support in such areas as Luxembourg. I would also include expanding our middle-office service offering and time zone processing capabilities. In terms of other acquisitions, we’re always looking to expand our business in any way that makes sense strategically for us.
GC Friday Interview: Christine Waldron, Executive Vice President of Alternative Investments for U.S. Bancorp Fund Services
In addition to being inducted into the Global Custodian Securities Services Hall of Fame last week, Christine Waldron’s efforts have led to U.S. Bancorp Fund Services’ most recent growth—Wednesday’s acquisition of Dublin-based hedge fund administrator Quintillion, providing the company with a gateway to Europe and $18 billion in hedge fund assets under administration.
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