Business process outsourcing specialist MainstreamBPO has picked up the registry business of the listed wealth-management company Perpetual for an undisclosed sum.
The registry division represents a small part of Perpetual’s Corporate Trust division, and just 0.2 per cent of its total revenue. One staff member will transfer from Perpetual to MainstreamBPO.
Existing clients will be migrated to MainstreamBPO prior to a full handover of the business in about a month. Perpetual will continue to offer responsible entity, trustee, custody and fund accounting services to registry clients that move across to MainstreamBPO.
MainstreamBPO employs 60 staff in Sydney, Melbourne and Singapore, and administers more than 130 managed-investment schemes and super funds, with combined assets under administration of more than $10 billion.
The chief executive officer of MainstreamBPO, Byram Johnson, says the deal “continues the aggressive stance we’ve taken in growing MainstreamBPO”.
“In terms of funds under administration, this is, the number of unlisted unit trusts being administered, we would be the largest of the independents – and by that I mean outside the major custodians,” Johnson says.
“In terms of impact on revenue, next year it could be up 7 or 8 per cent. It’s a great transaction for us. We can make a good lick of dough out of it.”
Late last month Perpetual managing director Geoff Lloyd unveiled a three-year, $70-million program designed to cut $50 million a year from the company’s cost base. Lloyd said the program, dubbed “Transformation 2015”, aims to reduce the corporate complexity that has crept into Perpetual over the past decade, and to refocus it on three core businesses: Perpetual Private, Perpetual Investments, and Corporate Trust.
In a separate development, MainstreamBPO has appointed Jamie Spark as chief executive officer of its ShareBPO division and as chief operating officer of its FundBPO division. Spark was previously with RBC Dexia.
The appointment follows a move by MainstreamBPO co-founder Martin Smith to Singapore to oversee MainstreamBPO’s recently opened offices there.