Clearstream acquires Citco's hedge fund custody processing unit

People Moves
23 Apr, 2014

Clearstream, the post-trade services provider, has acquired Citco’s hedge fund custody processing business, as the Luxembourg-based firm seeks to expand its work with alternative investment managers.

The acquisition of the Cork, Ireland-based Citco Global Securities Services (CGSS) hedge fund custody infrastructure division, which has roughly €40 billion in assets under custody, will see 300 staff joining Clearstream.  It will also license Clearstream to use Citco’s custody IT infrastructure.

A statement said Clearstream paid somewhere in the “mid double digit million euro range” for the business. The deal will also enable Citco to focus on its core fund investor client base – namely funds of hedge funds, family offices, insurers, pensions and endowment schemes via its Citco Alternative Investor Services division.

Philippe Seyll, member of the executive board and head of investment fund services at Clearstream, said the deal would enable the firm’s Vestima platform, which provides an automated and standardised system for routing trade orders to investment managers, to move beyond mutual funds into hedge funds.