US – Boston-based banking and financial services company, State Street Corporation, has acquired New York-based alternative investment fund accounting and administration services firm, International Fund Services, signalling its intention to increase its presence in the alternative investment area.

David Spina, chairman and chief executive officer of State Street, says its institutional clients are increasingly allocating more and more of their assets to non-traditional asset classes and as such State Street’s strategy is now to penetrate the alternative investment and private equity industry more.

“This acquisition marks an important milestone in extending our capabilities in alternative investments, including hedge funds. We will build our presence in this area by taking ownership interests in proven service providers specialising in alternative investment products,” Spina comments.

The cost of the deal is not disclosed and it is expected to close in the third quarter of this year, subject to regulatory approval.

State Street Corporation currently has some $808bn (€824bn) in global assets under management.

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