State Street to Acquire Goldman Sachs Administration Services

Boston-based State Street Corporation has agreed to acquire the hedge fund administration arm of Goldman Sachs.

The deal, worth $550 million, is set to go through in the final quarter of 2012, pending regulatory approval, and will see State Street amass a hedge fund pedigree to match its alternative assets service, which, as of June 30, 2012, stood at $877 billion under administration.

State Street will inherit the assets of Goldman Sachs Administration Services (GSAS), which currently stands at around $200 billion, spread across approximately 150 investment managers globally.

"GSAS is a premier provider of hedge fund administrative services and represents a strong franchise supported by longstanding relationships with highly regarded clients," says George Sullivan, executive vice president and global head of State Street's alternative investment services team. "We expect that GSAS clients will benefit from State Street's robust and flexible global servicing platform that is scalable for funds of all types and sizes."

Goldman Sachs' Prime Brokerage business will remain under the ownership of The Goldman Sachs Group.

GSAS is a premier provider of hedge fund administrative services and represents a strong franchise supported by longstanding relationships with highly regarded clients.