Alps Fund Services Inc., provider of investment products and services, expects to close on its announced acquisition of hedge fund administrator Kaufman Rossin Fund Services LLC in the first quarter of 2016.
Denver-based Alps, a subsidiary of DST Systems Inc. (NYSE: DST), provides products and services to the financial services industry. Kaufman Rossin Fund Services, or KRFS, is an independent fund administrator, consultant and back- and middle-office service provider for hedge funds, private equity funds, family offices and other clients.
Alps will pay $95 million cash for KRFS, which has annual revenues of about $26 million, according to a Form 8-K filed by DST Systems with the U.S. Securities and Exchange Commission. Ned Burke, Alps CEO, says his firm will become a top-20 hedge fund administrator through the deal and expand into fast-growing segments of administration for alternative investments. KRFS, which has offices in Miami, Boston, San Francisco, Dallas and the Cayman Islands, is an affiliate of the Kaufman Rossin & Co. accounting and advisory firm.
Several financial services M&A deals have been announced or consummated over the last half of 2015. In August, Canada Pension Plan Investment Board agreed to buy GE Capital Sponsor Finance, which includes PE lender GE Antares, from General Electric (NYSE: GE) for $12 billion.
In September, Mizuho Financial Group announced it would acquire a 16 percent stake in asset manager Matthews International Capital Management.
In October, Boston private equity firm TA Associates agreed to pay $1.15 billion to buy the asset management businesses of Russell Investments from the London Stock Exchange Group plc, which is keeping the Russell 2000 stock index. Also in October, Hellman & Friedman LLC agreed to buy a majority stake in Edelman Financial Services, which manages about $15 billion in assets.