Sanne Group has announced it will acquire IDS Fund Services (IDS), an independent South African based provider of outsourced investment administration services to the asset management industry, with a particular focus on hedge fund clients.

The transaction is due to complete within three months.

Dean Godwin, CEO of Sanne, said: “The acquisition of IDS is consistent with Sanne’s strategy of expanding the Group’s capabilities and product offering, and delivering greater jurisdictional diversification.”

“IDS’s track record as a leading provider of hedge fund administration services complements Sanne’s existing alternative asset specialisms in private equity, real estate and debt. I am pleased to welcome the management team and look forward to working with them as IDS delivers the next stage of its growth and development as part of the wider group.”

IDS was established in 2002 and is based in Cape Town, South Africa with operations in Malta.

IDS employs more than 140 staff, the majority of whom are based in its Cape Town headquarters, and administers structures and funds with assets in excess of R80bn (c. $5.03bn).

Its services encompass middle office and back office functions, including NAV calculations, fund accounting, investor services, and transaction and cash management.

Ian Hamilton, IDS Founder and CEO, said: “IDS has successfully built its fund administration business over the past 15 years. We are delighted to be joining Sanne who are recognized within the international fund and corporate administration sector as delivering a very high level of client service.”

“This approach fits with IDS’s own service ethos and we are confident that we can continue to develop the breadth and quality of our service offering to meet the evolving needs of the funds sector in South Africa,” he said.

Sanne is a specialist global provider of outsourced corporate and fund administration, reporting and fiduciary services.

Established for over 25 years and listed on the London Stock Exchange, Sanne employs approximately 350 people worldwide and administers structures and funds that have in excess of €100bn of assets.