The provider of outsourced corporate, fund and private client administration, reporting and fiduciary services has snapped up a fund administration business in the US.

Sanne Group has agreed to acquire New York-headquartered FLSV Fund Administration Services (FAS) for $65.8 million.

The purchase of FAS, which offers fund administration and reporting services to alternative asset managers, marks Sanne’s entry into the US alternative assets fund administration market. 

The group highlighted in a statement that North America is the world's largest market for alternative asset management, with private capital assets under management of $2.4 trillion, almost 60 per cent of the global total. This is forecast to grow at a compound annual rate of around 13 per cent over the next four to five years. Only 30 per cent of North American private capital assets are currently outsourced to third party administrators. This is estimated to reach 50 per cent by 2020, driven by regulatory change, evolving reporting requirements and the need for increased investment in technology infrastructure, the firm said.

FAS's chief executive, Jeffrey Hahn, and chief operating officer, Brenda Grayson, will remain with the business following the acquisition. They will head up what will become Sanne’s North American operations.

The deal, expected to complete by the end of November, will be immediately earnings enhancing, Sanne said in a statement. In 2015, FAS generated revenues of $18 million and EBITDA of $5.1 million, with gross assets totalling $3.1 million.

Sanne has also entered into a new £60 million ($77 million), five-year committed banking facility with HSBC, with an additional £40 million accordion facility, to refinance the group’s existing facilities with HSBC, fund the cash element of the FAS acquisition and provide the group with “significant” future funding capacity.