MUFG Investor Services Acquires UBS's Alternative Fund Services Business

Jun 19 2015 | 12:28pm ET

MUFG Investor Services has announced the acquisition of the Alternative Fund Services (AFS) business from UBS Global Asset Management.

MUFG is the global asset-servicing group of Mitsubishi UFJ Financial Group. UBS’s AFS business is a global fund administrator that provides professional services for hedge funds, private equity and real estate structures.

The deal will more than double Mitsubishi UFJ Trust & Banking Corp.’s assets under administration to $260 billion, according to Bloomberg. 

“This transaction is part of our strategy to build MUFG Investor Services into an industry-leading administrator, both organically and through acquisitions," said Junichi Okamoto, Group Head of Integrated Trust Assets Business Group, Deputy President, Mitsubishi UFJ Trust and Banking Corporation. 

"AFS’ strong client franchise, global footprint, and notably its strong presence in Asia, are an excellent strategic fit,” he continued. “We welcome AFS to our growing business and look forward to continuing to provide our clients with best-in-class service.”

Ulrich Koerner, President of UBS Global Asset Management, said: "In light of the increasing drive towards scale in fund administration, 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."

"MUFG's commitment to invest in the client franchise and the people, together with their strong focus on ensuring a seamless transition, were important factors in our decision," Koerner added. 

MUFG was advised in the transaction by a seven-person team from New York-based law firm Ropes & Gray. Terms were not immediately disclosed, although media reports are putting the price tag at up to $244 million.

The transaction is expected to close by the end of the year and is subject to customary regulatory approvals and closing conditions. It comes on the heels of similar global fund-administration buys by MUFG in 2013 and 2014, and if consummated, will bring the company up to sixth among global fund-services companies in terms of assets under administration, Bloomberg noted.

MUFG Investor Services provides asset servicing solutions, including fund administration, custody, foreign exchange, trustee services, depository and securities lending to more than 1,100 funds. It has 90 years of custody experience and has run a global securities lending program for 20 years.

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