Specialist global custodian Bank of Bermuda (BoB) has bought the fund administration arm of Tiedemann Investment Group, a New York-based hedge fund manager.

Tiedemann currently manages 14 offshore funds with $1.1 billion in assets under management. Under the agreement, Tiedemann's eleven back office staff will be transferred to BoB's subsidiary, Management International, in Dublin.

Paul Smith, BoB's head of global fund services in Hong Kong, declined to disclose how much was paid for the acquisition, saying only the transaction is significant for the bank's fund administration business. "Firstly, it is further indication of our role as a major service provider to specialist and emergent investment managers, particularly in the field of alternative and offshore schemes," says Smith. "Secondly, it strengthens our Dublin office as a key player in the phenomenal growth of this major European office."

Commenting on the sale of its back office to BoB, Hans Tiedemann, president of Tiedemann, says the bank is a "world class operation with the ability to provide a superior service" to clients. "We personally know some of the senior management in the GFS (BoB's global fund service) team and, having contacted a number of our competitors in the fund management business who have been happy with their services, we believe they will help us markedly improve our client administration in the future," he adds.

A provider of banking, asset management, fund administration and global custody services, BoB has approximately $90 billion in assets under custody and administration as at September last year. Headquartered in Bermuda, the bank is listed on the Bermuda Stock Exchange and has 14 offices around the world.