Mitsubishi UFJ Financial Group's MUFG Investor Services will acquire UBS Global Asset Management's Alternative Fund Services business, according to a statement.
MUFG is the fifth largest bank in the world with over $2.5 trillion (£1.57 trillion; €2.20 trillion) in assets and provides administration services for more than 1,100 funds, according to the statement. Mitsubishi UFJ, based in Tokyo, manages $338 billion in assets, according to PEI's Research & Analytics division.
A spokeswoman for MUFG declined to comment.
AFS is a global fund administrator for hedge funds, fund of hedge funds, private equity and real estate structures and is based in Canada, Cayman, Hong Kong, Ireland, Jersey, Singapore, UK and the US. It's a part of UBS, a Zurich-based asset manager with CHF 661 billion in invested assets and offices in 24 countries.
This deal is part of MUFG's strategy to expand its investor services through organic growth and acquisitions, said Junichi Okamoto, Mitsubishi UFJ Trust and Banking Corporation's group head of integrated trust assets business group. He said AFS was a “strategic fit,” considering its prevalence in Asia.
UBS president Ulrich Koerner cited the increasing drive towards scale in fund administration and said: “we concluded that the future development of AFS in servicing its clients would be best ensured as part of an organization with a strategic focus on asset servicing.”
The deal is expected to close in the fourth quarter this year and is subject to regulatory approvals and customary closing conditions.