State Street boosts alternative skillset

The US investment management services firm has acquired International Fund Services as it looks to step up its provision of alternative investment services.

State Street Corporation has agreed to acquire International Fund Services (IFS), which provides fund accounting and administration as well as trade support and middle office services for alternative investment portfolios. The deal comes at a time when the professionalisation of private equity as an asset class is progressing fast, making intermediaries such as IFS highly sought-after service providers. 

Based in New York, IFS services over 100 asset management firms and private equity fund managers, representing more than 350 funds globally. The company has operations centres in the US and Dublin and employs approximately 500 employees.

The acquisition is complementary to State Street’s present investment management activities and provides the company with an entry into the alternative assets administration and management. Financial terms of the deal were not disclosed.

David Spina, chairman and CEO of State Street, said the acquisition was a major step in providing administration services to alternative asset firms. 'We will build our presence in alternative investments by leveraging our strengths in securities finance, and by taking ownership interests in proven service providers specializing in alternative investment products.'

State Street is a provider of investment management services to global investors. State Street operates in 22 countries and 100 markets worldwide and has $6.3 trillion in assets under custody and $808bn in assets under management.