IDS is 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 acquisition of IDS broadens Sanne’s alternative asset capabilities through the delivery of a hedge platform which can be leveraged across the wider group network as well as increasing the group’s footprint in South Africa.
The acquisition will cost up to £13.6 million depending on the final audited financial performance of IDS for the year ended February 2016.
Dean Godwin, Chief Executive 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.’
Ian Hamilton, IDS Founder and CEO, added: ‘IDS has successfully built its fund administration business over the past fourteen years. We are delighted to be joining SANNE, who are recognised 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.’
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 R 80 billion (c. £.3.6 billion). Its services encompass middle office and back office functions, including NAV calculations, fund accounting, investor services, and transaction and cash management.
The transaction is due to complete within three months, after which the number of employees at SANNE will increase by 140 to over 500.