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Clearstream to buy Citco custody operation
23 April 2014
The ICSD has agreed to acquire Citco’s Cork-based hedge fund custody business
Clearstream is to buy the hedge fund custody infrastructure of
Citco Global Securities Services (CGSS) as part of plans to
expand its hedge fund services business for financial
The business, which is based in Cork, Ireland, will be sold to
Clearstream for an amount in the "mid double digit million euro
range", according to a statement released by the firms.
Philippe Seyll, member of the executive board and head of
investment funds services at Clearstream, said: "The additional
business of CGSS's hedge fund custody operation enables us to
fast-track our standardisation and automation initiatives in
the hedge funds industry and to offer our financial institution
customers a superior value proposition."
Citco and Clearstream signed an agreement for the sale, which
will go ahead in due course.
The statement said the buyout would allow Citco to focus on its
core fund investor client base which is mostly fund of hedge
funds, family offices, insurance companies and pension and
Some 300 employees of CGSS will move to Clearstream which will
have a license to use Citco's custody IT infrastructure.
"We are delighted to be able to offer our financial institution
clients the opportunity to combine Citco's capabilities in the
alternative sector, together with Clearstream's existing fund
platform for a true one-stop-shop fund processing product,"
said William Keunen, global head of Citco's asset servicing
He added that Citco's alternative investor services business
would continue to focus on providing a full suite of
asset-related services its core fund investor client base.
Keunen also suggested that Citco and Clearstream would develop
further linkages in the future.