3.2.6.2Vertical

Fund Administration Services

Third-party fund administrators providing NAV calculation and reporting.

Market snapshot

These figures describe Securities Processing & Back Office (3.2.6), the segment that Fund Administration Services sits within. They are not figures for Fund Administration Services on its own.

FragmentationConsolidatingEstimate

Securities processing has no discrete Census NAICS code under outsourcing; it sits within securities-industry (523xxx) and data-processing classifications, so the segment is not separately sized here.

Business model & economics

Revenue model

Asset-based and per-transaction processing fees

Key economics

Recurring revenue
High

embedded, asset-based processing

EBITDA margin
20–35%
Capex intensity
Low

Characteristics

  • The operational infrastructure of investing.
  • High switching costs once embedded in operations.
  • Asset managers outsourcing more middle/back office.

M&A deal context

Deal activityModerate

Who’s acquiring

  • Securities-services majors
  • Fund-administration consolidators
  • PE-backed processing platforms

What’s driving deals

  • Scale and technology separating the leaders.
  • Outsourcing of middle- and back-office functions.
  • Consolidation of fund administrators.

Find Fund Administration Services acquisition targets

Search Acquisera’s index for companies classified under Fund Administration Services (3.2.6.2) and build a targeted deal pipeline.

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