Accounting giant KPMG is set to leap into the front rank of hedge-fund service providers with the acquisition of Rothstein Kass.
Terms of the deal, which is to be announced today, were not disclosed. But acquiring Rothstein Kass will make KPMG the largest auditor of hedge funds by number of clients—it is currently fifth—and will add such illustrious names as Brigade Capital Management, Paulson & Co. and Pennant Capital Management to its roster.
KPMG has been pursuing Rothstein Kass for a number of years. Indeed, last year founder Steven Kass told employees that the firm was “not for sale.” But firm chairman Howard Altman told The Wall Street Journal yesterday, “things always change. Nothing’s ever static.”
Rothstein Kass informed employees of the deal, KPMG’s largest since its formation in 1987, yesterday.
Roseland, N.J.-based Rothstein was founded in 1959 and is the 20th-largest accounting firm in the U.S., according to Accounting Today. The firm has over 1,000 employees spread across 10 offices, including two in key overseas hedge-fund centers, the Cayman Islands and Ireland.