Business process outsourcing group MainstreamBPO has struck a $10 million acquisition financing deal with Investec, as it seeks to add SMSF, SMA and mortgage administration capabilities to its existing fund and super admin offerings.
The co-founder and chief executive of MainstreamBPO, Byram Johnston, said less than half of Investec’s $10 million debt facility had been used up by September’s purchase of Group Benefits, a Melbourne-based member administrator. MainstreamBPO’s foundation product is FundBPO, a provider of unit registry, fund admin and fund accounting to funds managers such as Magellan Financial Group. FundBPO’s client funds include mortgage income products, and Johnston said there were synergies in also administering the underlying mortgages. Apart from a mortgage admin group, and backoffice providers for SMSFs and SMAs, Johnston said another super member administrator was one of the four acquisitions currently in MainstreamBPO’s sights. “;There’s a fair number of contract reviews coming up over the next three years, and feedback I get is that a lot of industry funds aren’t happy with the service they’re getting from some of the big providers,”; Johnston said. “;I think there’s an opportunity for a group providing a more tailored service.”;
Since taking over the top job at the $44 billion Funds SA more than a year ago, chief executive John Piteo has ushered in an investment function overhaul and wrapped up an important stage of the fund’s five-year data transformation program. It pledges to recentre around investment performance and more efficient processes, as the “missing piece” has been found in incoming CIO Con Michalakis.
Darcy SongJanuary 10, 2025
