Hedge Funds

Big banks snap up the administrators

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Heavy investment in technology and the steady institutionalization of the business is set to drive further consolidation and takeovers

Hedge fund administration used to be a backwater of the booming alternative investment industry. But no more. The business of providing back office services to hedge funds, including independent NAV calculation, is suddenly showing signs of growth and is tempting some of the big banking giants to grab a piece of the action.

Over the past 18 months there has been a flurry of strategic acquisitions, mergers and equity investment in the area, involving traditional banks and other leading financial services