Global alternative investment fund administrator Alter Domus is acquiring U.S. fund administrator Strata Fund Solutions, which would result in a firm with about $1 trillion in assets under administration, said Doug Hart, group CEO of Alter Domus.
Terms of the deal, which is expected to close in the first quarter subject to regulatory reviews, are not being disclosed.
Salt Lake City-based Strata Fund Solutions provides back- and middle-office services for private equity and venture capital funds.
Alter Domus is a portfolio company of private equity firm Permira. FTV Capital and StepStone Group made a growth equity investment in Strata in August 2018 and are exiting their investments as part of this transaction.
This announcement comes less than a month after Permira announced Alter Domus' acquisition of Boston-based private equity and venture capital administrator IPS Fund Services, which has $9 billion in assets under administration.
"There's a view, and we share this view, that the larger mandates from larger investment managers require size and scale to service their accounts," Mr. Hart said. Technology is very expensive and ... has become a larger component of the service set," he said. "You have to be very large to scale technology."