Phoenix American Sells Fund Admin/Transfer Agent Business to Vistra
Phoenix American Financial Services Inc. – a provider of fund administration, fund accounting, and transfer agent services for the alternative investments industry – has sold its U.S.-based fund administration and transfer agent business to Vistra, a Hong Kong-based provider of business services, including fund administration.
Phoenix American’s fund administration and transfer agent business provides capacity and product knowledge supporting publicly registered Reg D, Reg A, and Reg CF funds and other wealth adviser-marketed funds.
The acquisition price was not disclosed. The transaction does not include Phoenix American’s aviation services business.
The companies said the transaction will enable Vistra clients operating predominantly in Asia and Europe to access the distribution channel for U.S. and European private markets. Also, Phoenix American fund administration and transfer agent clients in the private markets space will now have access to Vistra’s corporate and fund solutions expertise. This includes support as they expand outside of the United States, helping to navigate challenges including the number of countries of domicile, governance risks, availability of talent, and management fees.
“As a family business, Phoenix American is rooted in our culture as a close-knit team that works as a partner with our clients, freeing them to concentrate on making sales and acquiring assets. This culture was cultivated over 50 years servicing investment funds, with typical employees having over 10 years of experience, delivering true professionalism. This combination with Vistra reflects an excellent strategic and cultural fit between our two organizations due to our shared focus on core values, client commitment and a deep bench of talented employees,” said Andrew Constantin, chief operating officer of Phoenix American.
According to Vistra, the transaction will expand its presence and capabilities in the business-critical U.S. market, allowing it to provide end-to-end fund solutions across the entire investment life cycle. In particular, the move will enhance Vistra’s fund administration services to include an industry leading transfer agent solution and further deepen its private market capabilities. The deal will also bring new capabilities to Vistra in the high-volume retail investor space, with the acquisition of Phoenix American’s proprietary technology platform, STAR-XMS, which tracks investors and investment transactions to assist in fund performance reporting.
“Vistra’s vision is to make operating globally borderless and frictionless. Our solutions help our clients to navigate complexity in both their domestic and international markets and, as a result, to operate efficiently and compliantly wherever they need to,” said Simon Webster, chief executive officer of Vistra Group.
“This significant upgrade to our capabilities in the USA will help us to support our North American clients’ growth ambitions, as well as provide new access into the U.S. market for our clients across the world,” added Webster.
As part of the deal, Zane Doyle, chief strategy officer of Phoenix American, will join Vistra. He noted that the United States is “host to a vibrant market of SEC-registered alternative funds catering to a growing number of distribution channels. This transaction represents a major growth opportunity over the next five to seven years. The combined strengths of Phoenix American’s fund administration and transfer agent business and Vistra will provide existing and new clients access to a host of new services and solutions.”
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