FinSource expands alternative investments admin business
Maitland has merged its USD 1.5 billion international fund administration business with FinSource, the SA-based specialist admin services provider.
The deal will boost funds under administration by FinSource to in excess of USD 22 billion. The enlarged fund administration business will operate under the FinSource name.
Julie Krentz, who is originally from the Isle of Man and returns to head up the merged international administration business in the Isle of Man said: "Maitland operates in a niche that provides cross-border and multi-jurisdictional solutions to hedge funds and fund-of-hedge funds, as well as to private investors and institutions. Our fund administration business will build on its existing capabilities in the alternative investments market and help to strengthen the IOM's presence in this growing niche."
The efficiencies and economies of scale it provides will enable Maitland to grow its administration business rapidly. A key advantage is the ability to provide fund administration across multiple jurisdictions. Maitland has a network of ten offices in London, Paris, Luxembourg, Dublin, Geneva, Isle of Man, British Virgin Islands, Johannesburg, Durban and Cape Town.
"The Isle of Man office has a depth of knowledge in fund administration and has provided fund administration services since 1990. However, funds under our administration in the Isle of Man currently represent only 10% of the combined total. The high level of regulation in the Isle of Man is recognised as strategically important internationally in the marketing of funds and we are currently working on several enquiries pertaining to the recently introduced Experienced Investor Funds, so need to be in a position to increase our capacity to meet demand."
"We will increase our capacity to administer funds exponentially through deployment of the sophisticated technology that Finsource brings to the equation. The FinSource technology, based on SunGard systems, is world-class, and allows for customised reports and accounting structures," says Krentz. "Customer servicing will remain decentralised, in the location of the clients preference. For the Isle of Man and our other service centres this means that we will refocus our people around the customer servicing element which will be a competitive advantage."
John Mills, Director of Maitland, said: "A major attraction of the deal was the opportunity to acquire a stake in an established fund administration company with high-quality staff and state-of-the-art technology."
"The world over, compliance requirements are growing. Quality accounting and reporting are essential, particularly in the alternative investments market. Through FinSource clients will have access to specialists in this area and will enable us to offer fund administration services globally."
Mills said that another advantage is the lowering of entry levels for smaller institutions, fund managers and boutique firms, who will now have access to a sophisticated technology platform that allows for non-commoditised, bespoke solutions.
Maitland's enlarged international fund administration arm will provide functions such as shareholder servicing, funds for agency, fund accounting, portfolio administration, multi-manager administration, alternative administration and fund of funds administration.
FinSource utilises the world's leading back office system, a SunGard product known as InvestOne, a global real-time investment accounting solution, to carry out its portfolio administration services. The front office service is facilitated through Decalog, another award winning solution from SunGard.
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