U.S. Bancorp Fund Services has agreed to acquire AIS Fund Administration, including 176 employees in New Jersey, the United Kingdom and the Cayman Islands.
Adding AIS $25 billion in hedge fund assets under administration (AuA) will bring U.S. Bancorps total AuA to $50 billion in alternative assets, according to the bank. The administration business provides middle- and back-office services supporting alternative asset fund managers and investors.
Terrance Dolan, vice chairman of U.S. Bank Wealth Management & Securities Services, says the acquisition is part of U.S. Banks strategic growth plan in the securities services space. This enables us to expand our fund-servicing capabilities and complements our focus on corporate trust services, he says.
A spokesperson for U.S. Bank said terms of the deal were not disclosed. The transaction is subject to regulatory approval.
U.S. Bancorp says existing clients of both administration divisions will continue to work with the same teams.
It has been a year of M&A activity in the fund administration space, first with technology provider SS&Cs acquisition of GlobeOp for more than $800 million in May, followed by State Streets acquisition of the fund administration business of Goldman Sachs for $550 million.
Earlier this month, Maitland Fund Administration acquired Admiral Fund Administration, giving the combined businesses a total AuA of $145 billion.
For a short time SS&C GlobeOp became the worlds largest fund administrator by AuA until the State Street acquisition moved it into the top spot with $877 billion in AuA. Independent administrator Citco for a number of years was the largest administrator with more than $600 billion in AuA.
“This is an important acquisition for U.S. Bancorp Fund Services as it demonstrates our long-term commitment to becoming an alternative investment services leader,” says Joe Redwine, president, U.S. Bancorp Fund Services.
AIS received a number of top ratings in the latest Global CustodianHedge Fund Administration Survey.
“We are excited to become a part of the U.S. Bancorp team, an organization that shares AIS’ mission, values and approach to customer service,” says Boris Tiomkin, CEO of AIS Fund Administration. “We believe the addition of U.S. Bancorp’s highly regarded suite of services, such as custody, trust and other banking services will provide significant benefits to our clients.”