SS&C keeps eyes on acquisitions as it achieves record revenues

SS&C completed its acquisition of Citi and Wells Fargo Fund Services last year, and has since built on the fund admin business with a number of high profile deals.
By Joe Parsons

SS&C Technologies achieved record revenues of $414.1 million in the second quarter, with its CEO claiming the administrator is still interested in some of its large independent competitors. 

Revenues at the tech giant were up 7.7% as its fund administration and outsourcing arm, SS&C GlobeOp, grew 15.3%.

The increase in revenues follows the full integration of Citi and Wells Fargo’s hedge fund services businesses.

Rahul Kanwar, head of SS&C GlobeOp, explained on an earnings call a number of high profile deals boosted revenues, including a “$10 billion-plus licensed client transitioned to full service fund administration”, “an oil and gas PE firm chose to convert their in-house administration operations to SS&C GlobeOp”, and “large multi-asset manager added to their existing relationship with us and moved their private equity fund administration to SS&C GlobeOp”.

Being one of the largest alternative fund administrators in the world, SS&C has grabbed headlines with a number of acquisitions over the past year, as some bank-owned administrators withdrew from the space.

Following a period of redemptions among hedge funds, analysts were concerned about the impact it could have on the profitability of the business among bank-owned and some independent administrators.

However Bill Stone, CEO of SS&C Technologies, said on the earnings call this may not impact the dynamics of industry consolidation.

“I think what’s happening in financial services, in fund administration, is particularly for the bank-owned fund administrators, I don’t really think that a few billion dollars’ worth of fund flows is going to decide whether they stay in this business or not,” said Stone.

“So I think that consolidation will continue. And then for the independent ones, it can make a little bit of a difference. But there are only a couple of large independent ones that we would be particularly interested in anyway.”