Clearstream is acquiring Citco’s Cork-based financial institution hedge fund custody processing business for a sum in the mid double digit million euro range.
The deal allows Clearstream to expand its hedge fund services for financial institutions whilst enabling Citco to focus on its core fund investor client base – namely fund of hedge funds, family offices, insurance companies and pension and endowment schemes – via its Citco Alternative Investor Services (CAIS) division.
The acquisition of Citco Global Securities Services’ (CGSS) hedge fund custody infrastructure adds around 300 CGSS employees based in Cork to Clearstream and licences Clearstream to use Citco’s custody IT infrastructure.
The two companies will ensure the takeover takes place in a gradual way in order to ensure a smooth transition.
Philippe Seyll, member of the executive board and head of investment funds services at Clearstream, says: “The additional business of Citco Global Securities Services’ hedge fund custody operation enables us to fast-track our standardisation and automation initiatives in the hedge funds industry and to offer our financial institution customers a superior value proposition. The know-how and expertise in hedge funds operations we acquire from Citco combined with our operational excellence in mutual funds will enable our Vestima platform to become the leading international fund market infrastructure for all types of funds.”
William Keunen, global head of Citco’s asset servicing business, says: “We are delighted to be able to offer our financial institution clients the opportunity to combine Citco’s capabilities in the alternative sector, together with Clearstream’s existing fund platform for a true one-stop-shop fund processing product. Citco’s Alternative Investor Services division will continue to focus on its core business of providing a full suite of asset related services to our core fund investor client base that allocate to alternative asset classes. We look forward to continuing to develop links with Clearstream as a global asset service provider.”
