The Australian fund administration provider MainstreamBPO, has entered a deal to acquire New York based Fundadministration. The deal is in line with Mainstream BPO’s aggressive global expansion program. Fundadministration offers comprehensive accounting and administrative solutions to hedge funds, registered investment advisers (RIAs) and traders. The firm manages 140 funds for its 45 global clients with total funds under administration (FUA) of more than $5 billion. Upon completion, Fundadministration’s CEO Denise DePaola will join MainstreamBPO’s executive team and head the company’s operations in the US. All Fundadministration staff will join MainstreamBPO and become shareholders of the new company. The deal is expected to close by the end of September.
MainstreamBPO is one of Australia’s largest fund administrators. With the acquisition of Fundadministration, the company’s FUA will exceed A$94 billion. MainstreamBPO believes its latest acquisition is strategic to its global expansion, given Fundadministration’s prime location. New York City accounts for $2.3 trillion worth of hedge fund manager assets, approximately 60% of the world’s total hedge fund managers. This will provide the new company with an ideal location in the heart of the United State’s financial market, from which it can gain better access to other locations in the Caribbean and North America. Their latest acquisition follows their purchase of Alter Domus’ Asia-Pacific hedge fund administration business in 2015 and its acquisition of HFO’s Hong Kong operations in 2014.
The companies utilise sophisticated technological packages, with Fundadministration boasting a fully automated administrative package that reduces errors and saves time over the vast array of services it offers. Voted Full-Service Fund Administrator of the Year 2016, and CEO Denise voted Game Changer of the Year 2016, there is much reason for optimism in the performance of the merged company. MainstreamBPO Chairman and Managing Director Byram Johnston stated “We are pleased that Denise and her team will join us to grow and increase our hedge fund services”, a sentiment which Denise DePaola reiterated. MainstreamBPO has submitted all documentation to the Australian Securities Exchange (ASX).