Mitsubishi UFJ to acquire Butterfield Fulcrum
Mitsubishi UFJ Trust and Banking Corporation (MUTB) is to acquire Butterfield Fulcrum, the Bermuda-based fund administrator in what is the latest M&A deal in the space.
The cost of the deal was not disclosed and the transaction is subject to regulatory approval. In a statement, Butterfield Fulcrum, which has $100 billion in Assets under Administration (AuA), said existing management and staff would remain.
Glenn Henderson, chief executive officer at Butterfield Fulcrum, said the acquisition would help the company increase its breadth of products and services, geographical reach and balance sheet. “Backed by the strength of MUFG, we expect to add numerous client services in the near future including banking, custody, trust, foreign exchange and securities lending,” he said.
The last few years has witnessed significant M&A activity in the oversaturated fund administration sector. The first landmark deal was SS&C’s decision to buy GlobeOp for £572 million, while State Street AIS purchased Goldman Sachs Administration Services for $550 million, bringing its AuA to north of $700 billion making it the largest global fund administrator, leapfrogging Citco. Nonetheless, smaller, specialist, or non-bank backed fund administrators facing falling AuA, are the most likely candidates for consolidation.