Alter Domus provides services to international private equity & infrastructure houses, real estate firms, private debt managers, capital markets’ issuers and private clients.
The transaction is consistent with MainstreamBPO’s strategy of expanding its global footprint and follows the purchase of Alter Domus’ hedge fund administration business in Hong Kong during 2015.
The sale involves a number of long term client contracts for fund administration services provided out of Malta, including net asset value calculations and fund accounting, to European domiciled hedge funds.
The associated annualised revenue of up to $1 million will be recurring revenue from monthly service fees which is expected to increase over time as the underlying funds grow in size.
MainstreamBPO anticipates that the transaction will positively impact its FY18 revenue and earnings, with any FY17 revenue contribution likely to be negated by set up and transition costs.
The latest acquisition extends MainstreamBPO’s fund expertise and capability in Australia, Asia and the U.S. to European compliant funds.
The transaction is expected to be completed in January 2017, subject to the issue of a recognition certification from the Malta Financial Services Authority (MFSA) to act as a fund administrator in Malta.
MainstreamBPO earned a net profit of $1 million in FY2016 from a revenue of $18.9 million.