US Financial Services Firm Acquires Cayman Hedge Fund Administrator

by Amanda Banks, Tax-News.com, London

08 February 2005

US-based financial services firm BISYS has taken a major stake in the Cayman Islands with its recent acquisition of RK Consulting LLC and its subsidiary, RK Consulting (Cayman) Limited.

The BISYS Group consists of three broad businesses, collectively consisting of 10 units, covering information services, investment services and insurance and education services.

Its latest acquisition has increased the firm’s hedge fund and private equity businesses to over $180 billion in assets under administration, establishing BISYS as one of the leading companies in the alternative investment industry.

BISYS Executive Vice President, J Robert Jones Jr, commented that the desire to increase the firm’s presence in the Cayman Islands was a major factor in the company’s growth plans.

“Entities domiciled here, like ours, are able to attract more investors as they themselves consistently demonstrate confidence about this jurisdiction, based primarily on its stability,” Jones stated, according to Cayman Net News.

“Acquiring Cayman-based operations is considered a huge part of BISYS’ plans for growth, and, talks had been brewing between BISYS and RK Consulting for some time now,” he added.

RK Consulting is the investment fund administration affiliate of Rothstein Kass and provides a wide range of administration and outsourcing services to hedge funds, private equity funds, and funds of funds located throughout the world, and the firm’s Managing Partner, Peter Young, also endorsed the Cayman Islands’ suitability as a financial jurisdiction.

“It is clear that the Cayman Islands understand how to be proactive in the interest of the development of the financial sector. Based on the laws like the mutual fund laws that were in place here, way before other similar jurisdictions had them, as well as the amendments to the Companies Law to attract hedge and mutual funds, companies like BISYS and RK Consulting are confident that there is an understanding here of what the financial sector needs to function,” noted Mr Young, adding that BISYS intends to increase its presence in the jurisdiction in the future.

Recommended