State Street Corp. has agreed to acquire Goldman Sachs' hedge fund administration arm for $550 million.
The purchase of Goldman Sachs Administration Services in is expected to be finalized in the fourth quarter. GSAS administers approximately $200 billion in single-manager hedge fund assets on behalf of approximately 150 investment manager clients worldwide. Its employees will join State Street’s Alternative Investment Solutions team, which already numbers more than 3,000 staffers and is headed by George Sullivan.
The deal does not include Goldman Sachs’ prime brokerage business.
“We are pleased to join the State Street AIS team, a group that has the same high-touch approach to client service as GSAS," Cory Thackeray, managing director and global head of GSAS, who will join State Street, said. "With this transaction, we will be well-positioned to offer our clients an enhanced product offering that covers the entire investment lifecycle and provides relevant regulatory compliance, risk and transparency solutions that our clients often request to help them navigate today’s complex environment.”
State Street had $22.4 trillion in assets under custody or administration and $1.9 trillion in assets under management as of June 30, 2012. Alternative assets under management stood at $877 billion as of that date.