MUFG Investor Services has agreed to buy the hedge fund administration business of Maitland, increasing its total assets under administration (AuA) by $20 billion.
The acquisition will give hedge fund clients of Maitland access to banking and treasury solutions of Mitsubishi UFJ, MUFG’s Japanese parent bank.
Terms of the deal was not disclosed but will bring MUFG’s AuA to over $600 billion, with Maitland personnel to join MUFG’s offices in the Cayman Islands, Halifax and Dublin.
“We were impressed with the work Maitland delivers and the superior level of service they provide to clients, qualities we hold to a high regard as well,” said John Sergides, CEO at MUFG Investor Services.
“By adding Maitland’s capabilities and technology, we are able to reaffirm our commitment to the alternative asset servicing space and ensure our clients continue to receive the best possible support.”
The transaction is expected to close in 2020, subject to regulatory approval.
The acquisition is MUFG’s first in the administration space in over three years, after it acquired the private equity administration business of Neuberger Berman Group in May 2016. Prior to that, MUFG also purchased UBS Asset Management’s alternatives fund services business in 2015.
There has been a flurry of fund administration deals this year, led by Apex Group which acquired four businesses this year alone, including hedge fund administrator Beacon Fund Services and Atlantic Fund Services. It also completed the takeover of fund administrator Custom House and Ipes.