KPMG acquires Rothstein Kass
KPMG has acquired the New Jersey-based Rothstein Kass enabling the firm to leapfrog Ernst & Young (EY) to become the largest auditor of hedge funds by numbers.
KPMG will now service 3,679 hedge funds following the merger, marginally higher than EY which looks after 3,583 managers, according to data from Audit Analytics. Prior to the merger, KPMG was the fifth largest auditor of hedge funds, behind PricewaterhouseCoopers (PwC), Rothstein Kass and Deloitte.
A statement said most of Rothstein Kass’ principals and employees will join KPMG and highlighted the transition would be seamless with no disruption to clients. Terms and conditions of the deal were not disclosed. A KPMG take-over of Rothstein Kass had been on the rumour mill for some time now.
KPMG has been trying to beef up its hedge fund service in the US over the last few years. Robert Mirsky, global head of KPMG’s hedge fund practice, was recently relocated to New York from London, as part of the firm’s efforts to build up its hedge fund business.
"This agreement will significantly strengthen KPMG's market position in the alternative investments space and enable us to provide the highest level of service to hedge funds of every size and at every stage of growth, from emerging managers to the most seasoned funds," said P. Scott Ozanus, deputy chairman and chief operating officer at KPMG.