UK – JP Morgan is close to doing a deal with a UK-based hedge fund manager with some £2bn (€2.9bn) in assets under management, according to a senior figure at the bank (Updates to clarify nature of deal).

Bhagesh Malde, global business head for hedge fund services at JP Morgan Worldwide Securities Services, told IPE that the transaction would be along similar lines to the recent Paloma deal.

JP Morgan announced it had agreed to buy the middle and back office operations of Connecticut-based fund management group Paloma in February this year for an undisclosed sum.

Malde declined to name the acquisition target. A JP Morgan spokeswoman declined to comment specifically but pointed out that the bank was in the process of growing its hedge funds servicing business and it was looking at deals involving typically $1bn-$5bn in assets under management.

“We’re looking at a number of opportunities,” she said.

It said at the time of the Paloma deal that it “builds out” the launch of its Hedge Fund Services business

"An increasing number of our hedge fund customers are interested in finding a trusted third party to run their operations for them," Malde said at the time.

"Not only can this service lower the cost of operations for hedge funds, but it frees managers from operational issues so they can focus on what they do best - making trading decisions."

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