Acquisition and consolidation activity continues apace in the fund administration industry. With financial institutions and private equity firms continuing to recognise the value in and potential for growth of administration businesses, the drive towards a market dominated by a handful of large, international players at times feels inevitable and the days of the independent, owner-managed business numbered. But is bigger always better from a client’s perspective?

In this article we explore the positives and negatives of acquisition and consolidation in the administration industry from a client’s point of view and discuss whether there is still space in the market for smaller, independent administrators to flourish.