NEW YORK (HedgeWorld.com)--Rothstein Kass is selling RK Consulting, its fund administration affiliate with clients that include hedge funds, funds of funds and private equity funds, to BISYS Group Inc.
Roseland, N.J.-headquartered Rothstein Kass announced that it would continue to provide accounting, audit and tax services to the alternative investments industry.
The firm's executives highlighted the need to avoid conflicts of interest as the main motivation for the sale. "Due to increasing regulation in the accounting industry and to ensure our independence and objectivity, it was in the best interest of Rothstein Kass, its clients and employees to divest the firm's interests in the fund administration business," said Steven Kass, in a statement.
According to another partner, Howard Altman, while fund administration was complementary to the firm's other operations, "the regulatory environment is too volatile, and we did not want to be in a position where our independence might be compromised."
The transaction is expected to be completed in the next several weeks. At that time, Messrs. Kass and Altman are to succeed Harris Rothstein as co-managing principals.
BISYS has been developing its fund administration business through acquisitions. It purchased Hemisphere Group, Bermuda, in 2002 (see ).
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