State Street Corporation is to acquire International Fund Services (IFS), a provider of fund accounting and administration as well as trade support and middle office services for alternative investment portfolios. Financial terms were not disclosed.
IFS services over 100 large asset management firms and private equity fund managers, representing more than 350 funds globally. IFS is headquartered in New York City, with operations centres in New York City and Dublin, Ireland with approximately 500 employees.
David Spina, chairman and chief executive officer of State Street, says: "This acquisition marks an important milestone in delivering on two of our key priorities - enriching our relationships with sophisticated global investors and extending our capabilities in alternative investments, including hedge funds."
He adds: "In addition to expanding our core servicing capabilities, we will build our presence in alternative investments by leveraging our strengths in securities finance, and by taking ownership interests in proven service providers specialising in alternative investment products."
The transaction is expected to be neutral to earnings in 2002.