TMF Group has agreed to buy State Street’s fund administration businesses in the Channel Islands, marking the first acquisitive move under its new chief executive.
The deal will include State Street’s private equity and real estate (PERE) fund servicing units in the Channel Islands, and will take TMF Group’s assets under administration to over $125 billion for PERE clients.
In Jersey, the acquisition will add fund administration to its existing corporate and trust services, while in Guernsey, it will complement its existing business.
The move is the first for Mark Weil, the newly appointed chief executive officer who joined in May this year.
“The funds sector is one of our global specialties where we see a great opportunity for a firm with our geographic reach and technical capabilities,” said Weil.
“The combination of State Street and TMF funds platforms will create a tremendous offering to take to funds around the world, whether for the funds themselves, their SPVs or the operating entities they have invested in.”
The acquisition comes at an exciting time for fund services businesses in the Channel Islands.
A recent survey from the Jersey Financial Services Commission (JFSC) showed the net asset value of regulated funds under administration in Jersey increased 14% year-on-year to over £300 billion, the highest recorded figure to date.
The deal will also allow State Street to realign its funds services strategy to focus on other growth opportunities.
“We will work closely with TMF Group over the coming months to ensure a seamless transition for our clients and employees in Jersey and Guernsey,” added Bob Keogh, head of alternative investment solutions, EMEA, State Street.
Earlier this year, TMF Group was taken over by private equity firm CVC Capital Partners for €1.75 billion.