Wells Fargo Agrees to Sell Fund Administration Business to SS&C

  • SS&C to acquire operations in U.S., Singapore, Hong Kong, U.K.
  • Wells Fargo unit administers $42 billion in alternative assets

Wells Fargo & Co.’s securities unit agreed to sell its fund administration business to SS&C Technologies Holdings Inc., a provider of software and investment services to the finance industry.

As part of the deal, SS&C will acquire Wells Fargo Global Fund Services operations and employees in New York, Minneapolis, Singapore, Hong Kong and the U.K., according to a statement from the San Francisco-based bank that didn’t include terms. The 250-employee Wells Fargo unit administers more than $42 billion in alternative assets, SS&C said in a separate statement.

SS&C has been expanding as new regulations have prompted banks to withdraw from providing some services to hedge funds and alternative-asset managers. The Windsor, Connecticut-based firm in March bought Citigroup Inc.’s Alternative Investor Services business for $321 million.

“We believe GFS clients will benefit from SS&C’s industry-leading position, proprietary technology and depth of expertise in fund administration,” said Dan Thomas, head of institutional investor services at the bank’s securities unit. “Wells Fargo Securities will continue to provide financial solutions to our alternative-asset manager clients in core areas such as prime services, futures and OTC clearing and futures execution.”

The purchase is scheduled to be completed in the fourth quarter, according to the statements. Wells Fargo Securities served as exclusive financial adviser to Wells Fargo in connection with the transaction, with K&L Gates LLP serving as legal counsel.

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