U.S. Bancorp subsidiary U.S. Bancorp Fund Services is buying hedge fund servicer AIS Fund Administration as the Minneapolis-based lender expands its securities services business.
Terms of the deal, announced Tuesday, weren't disclosed. It's expected to close Dec. 1 pending regulatory approval.
AIS, founded in 2002, has about $25 billion in hedge fund assets under administration and employs 176 people in offices in Hackensack, N.J.; London; and the Cayman Islands.
U.S. Bancorp Fund Services, with a total of $641 billion in assets under administration before the acquisition, is based in Milwaukee and employs 756 people. The AIS acquisition doubles the size of its hedge fund assets under administration to $50 billion.
Joe Redwine, president of U.S. Bancorp Fund Services, said in a news release that it plans to become an alternative investment services leader.
Terrance Dolan, vice chairman of U.S. Bank Wealth Management & Securities Services, said the deal complements the bank's focus on corporate trust services.