Long seen as ripe for consolidation, the fund administration sector is in the middle of another flurry of private equity-backed M&A.

The top fund administration players consolidating the industry — a number of which are backed by buyout houses — expect the large to continue to get larger. 

Private equity firms are still buying businesses to scale, but for those businesses starting at zero, it is difficult to gain market share in the fund administration space, Hughes said in an earlier interview. “You’ll be able to pick up some smaller clients or some riskier clients generally if you’re starting in the industry now and so there are significant barriers to entry, but some are able to get traction.”

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