Financial services consultancy Capco has acquired FundClear Solutions, a provider of managed services to hedge funds. Financial terms of the deal were not disclosed.
Following the acquisition, Capco is establishing a new business unit aimed at expanding its consulting and managed services activities in the hedge fund sector.
FundClear will be integrated into the new business line, called Capco Hedge Fund Services (CHFS), which will offer hedge funds a comprehensive hosted suite of front, middle and back office applications with full operations resources and support for individual hedge funds.
The applications offered range from trade entry and flash P&L reporting to portfolio accounting, reconciliation and risk management.
Commenting on the new business line, Gopi Chelliah, EVP at Capco, says: "We are now in a position to offer both start-up and existing funds a compelling, scaleable outsourced alternative to building and maintaining their own operations and technical infrastructure.
"These new offerings neatly complement Capco's existing managed services offerings in reference data management and reconciliations management and integrate powerfully with our consulting expertise in operational excellence and hedge fund operations."
Simon Luhr and Gerry Buggy, co-founders of FundClear, have both joined Capco as partners to lead the new business unit.
Commenting on the acquisition, Buggy says: "We now have a first class opportunity to claim a niche position in the market place. We are an independent, neutral provider bringing 'institutional quality' infrastructure and real-time applications to hedge funds on a managed service basis."