20/01/2010 Author: Gwyn Roberts

Fortis Prime sale reaches conclusion

The saga of the sale of Fortis Prime Solutions appears to be coming to a close, as the administration unit’s parent, Fortis Bank, and Credit Suisse are believed to have finally agreed on the exact terms of an expected acquisition deal.

Credit Suisse, which has been in talks with Fortis since December, is now in the final stages of conducting due diligence on the business, prior to agreeing on the deal’s price range.

Late last year, Fortis Bank confirmed in a short statement that it had “decided to enter into exclusive negotiations with Credit Suisse regarding the sale of Prime Fund Solutions.”

It is thought that Credit Suisse has agreed to absorb Fortis’s outstanding credit facilities, although the final price of the deal will reflect this risk. Fortis Bank will also guarantee any remaining outstanding risk.

The hedge fund administration sector is currently considered to be ripe for consolidation, with a number of private equity firms circling the space and large administrators set to absorb niche players.