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Mitsubishi UFJ to buy UBS' alternative fund services unit

  • Holden Mann
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MUFG Investor Services, the asset servicing group of Mitsubishi UFJ Financial Group, will buy UBS Global Asset Management's Alternative Fund Services (AFS) business.

UBS said in a release that the sale would allow the parent company to put more focus on its core business. It will also allow AFS to deliver better services, as MUFG is more aligned with its purpose. The sale is expected to close in the fourth quarter of 2015. The deal value was not disclosed.

AFS is a global fund administrator that provides services for hedge funds, funds of hedge funds, private equity and real estate structures. It has offices in eight countries, including Hong Kong and Singapore.

UBS has seen AFS' margins decline in recent years amid a general slump in worldwide interest rates. This has come as the bank seeks to reorganize and focus on its global wealth management operations amid a stricter worldwide regulatory environment, and considers pruning its less profitable branches.

MUFG's purchase of AFS is part of Mitsubishi UFJ's campaign to expand its global operations in reaction to depressed lending returns in Japan. The sale will increase MUFG's global assets under management from $100 billion to $260 billion. AFS' 300 employees will also join MUFG.

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