TMF Group acquires remaining stake in Custom House
TMF Group is to acquire the remaining 49% stake in Custom House Global Fund Services.
The deal, which is subject to regulatory approval, should be completed by June 2014, and will help enable TMF Group to further expand into the alternatives space.
Dermot Butler, founder of Custom House, will become president of the renamed TMF Custom House Global Fund Services, and will step down as chairman. Mark Hedderman will remain as chief executive officer along with other key executives.
The combined business will now operate out of 14 global locations and service nearly $40 billion in Assets under Administration (AuA).
The highly saturated hedge fund administration market has seen a spate of mergers over the last few years. A number of the smaller administrators are struggling to make decent revenues as their clients have failed to grow their Assets under Management (AuM), which has prompted many to merge. Recent deals have included the acquisition of Dublin-based Quintillion by US Bancorp Fund Services at the end of 2013 while Mitsubishi UFJ Financial Group purchased Butterfield Fulcrum.
Many experts predict only the largest or investment bank-backed fund administrators will survive going forward.