Recently, U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp (USB), announced an agreement to acquire Irish-based Quintillion Limited. The deal is consistent with U.S. Bancorp Fund Services’ strategy to develop its securities services operations in Europe.
The deal will result in the addition of $18 billion in hedge fund assets under administration and 53 Dublin-based staff to U.S. Bancorp Fund Services’ present alternative investment operation.
On completion of the deal, U.S. Bancorp Fund Services will have more than 1,100 employees in the offices in Milwaukee, New Jersey, Cayman Islands, London and Dublin. The unit will support $832 billion in assets under administration for around 2,900 funds, including $84 billion of alternative investment assets for investment managers.
U.S Bancorp Fund Services’ deal with Quintillion will help the company provide superior fund administration solutions by incorporating the latest technological platform – a trademark of Quintillion. Moreover, U.S. Bancorp's financial strength and high expertise combined with its diverse service offerings such as expanded custody, trust and other banking services will significantly benefit the clients of Quintillion.
Further, the deal will open up opportunities for US Bancorp’s expansion in Europe by extending its operations to Dublin, an important financial center.
With sluggish economic recovery in the U.S. coupled with stringent regulations, U.S. Bancorp has been seeking to increase its footprint in Europe. In March, it agreed to buy the municipal bond trustee business of Deutsche Bank AG (DB). The deal added $57 billion to U.S. Bancorp's assets under administration.
U.S. Bancorp currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector include Comerica Inc. (CMA) and BankUnited, Inc. (BKU). Both these stocks carry a Zacks Rank #2 (Buy).
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