State Street will acquire Goldman Sachs' $200 billion in single-manager hedge fund assets under administration, raising its total hedge fund assets under administration to $705 billion, said Scott Carpenter, senior vice president and global head of State Street's alternative investment solutions client relationship and strategy group.
“We view alternatives as a strategic route for the firm,” Mr. Carpenter said in a telephone interview. “We're always looking for ways to grow, through acquisitions or organically.”
Goldman Sachs' business was attractive because of its “blue-chip clients,” Mr. Carpenter said. State Street will continue to use its proprietary hedge fund platform.
After the transaction is completed, State Street will have $1.1 trillion in alternative assets under administration, Mr. Carpenter said.
Cory Thackeray, managing director and global head of Goldman Sachs Administration Services, will continue to lead the team servicing Goldman's clients.
The transaction is expected to be finalized in the fourth quarter.