Maples Fund Services has acquired Vista Fund Services operations in Hong Kong and Singapore. Global Custodian talks to Maples’ Scott Somerville about the importance of the acquisition for its expanding presence in Asia and his plans for integrating the businesses.
What is the background to the acquisition? What other routes /companies did you look at to broaden your reach in Asia?
SS: For a number of years we have been reviewing opportunities to grow in Asia via acquisition but prior to Vistra FS, we were not able to identify an administrator with operations in both Hong Kong and Singapore that met with our criteria. However, with Vistra FS, there are numerous synergies that made the acquisition very compelling. In addition, given our significant growth in the region, the ability to have the Vistra FS senior management team stay with us after the acquisition in leading roles going forward, along with looking to retain the remaining staff to enhance our existing on the ground resources, positions us well for future opportunities in the region. Typically launch sizes are smaller in Asia when compared to other markets (i.e. US) so supplementing our strong year on year organic growth with the acquisition provides for a substantial boost to our Asian based AUA and client base.
In what areas do Maples and Vistra FS’ Asia operations have complementary synergies?
SS: Vistra FS’ Asian fund business is complimentary to our existing fund administration business in the region. There are numerous synergies between the two businesses, including:
• A focus on providing clients with custom solutions;
• Use of leading third party technology, including Advent Geneva and Advent World Investor;
• Ability to adapt and service complex structures;
• Differentiation through technology;
• Approach to client service; and
• Independent firms free of conflicts.
What will the result be in terms of integrating teams and assets?
SS: The integration of Vistra FS into Maples Fund Services in Asia presents a unique and compelling proposition to investment managers and investors who want experience and independence along with superior solutions, technology and client servicing from their administrator. The acquisition brings our AuA in Asia to nearly $9billion.
Who will head up the operations?
SS: Eastern Fong, Regional Head of Fund Services – Asia, will continue to have overall responsibility for the business in the region. Transitioning from Vistra FS, Andrew Mascall-Robson will take on the position of Regional Head of Client Relationship – Asia, and Shirley Yuen will take on the role of Regional Head of Client Management – Asia.
Where does Maples see the growth in Asia?
SS: We view Asia as a strong growth opportunity for our business both in the near and long-term and we are well positioned in both Hong Kong and Singapore. Growth will continue to come from hedge funds and private equity funds in China, while in Singapore the growth opportunities are with family offices and private equity funds that are investing into SE Asia and India. Japan is an area that we will place more focus and resources on going forward as we believe there are significant opportunities in the market.
What makes the region different from a servicing point of view?
SS: Client services is heavily valued in the region. Managers appreciate working with a team that is invested in the relationship. Additionally servicing Chinese managers requires mandarin speaking professionals, so from a hiring standpoint we look for talent with local market expertise as well as language skills aligned to the region. Within Asia, there are regional differences as well. Hong Kong is more hedge fund focused while Singapore is primarily private equity and family offices. Servicing private equity funds requires a different set of skills from hedge funds, which is more straight-through processing and automation based. Private equity requires our specialized team to understand the nuances of private equity investment portfolios and time horizons, complex valuation issues, capital account allocations and complicated carried interest calculations.
Q&A: Scott Somerville of MFS on the Acquisition of Vistra’s Hong Kong and Singapore Ops
Maples Fund Services has acquired Vista Fund Services operations in Hong Kong and Singapore. Global Custodian talks to Maples’ Scott Somerville about the importance of the acquisition for its expanding presence in Asia and his plans for integrating the businesses.