The Bermuda-based private-equity services operations of Schroders have been acquired by the global custody and fund services arm of US banking giant JP Morgan.

Around 50 people work at Schroders' Bermuda office, based in Schroders House, on Front Street, with around half of them working in the company's private-equity services.

Staff at the Bermuda office were told news of the takeover yesterday morning.

Schroders bosses said yesterday that its asset management business will continue in Bermuda and will strive to do more business with the Island's insurance companies.

It is expected that JP Morgan will keep the private-equity services operation on the Island, working in its current fourth-floor location at Schroders House.

JP Morgan Worldwide Securities Services announced yesterday that it had signed an agreement to acquire the UK institution's private-equity business, which is based in Guernsey, as well as Bermuda, and which has $6.2 billion in committed capital under administration.

"This acquisition emphasises our commitment to continuing to build out our industry-leading private equity administration offering," said Conrad Kozak, CEO of JP Morgan Worldwide Securities Services.

"It allows us to expand the global footprint of our private equity administration business, while at the same time allowing us to further deepen our relationship with Schroders."

Only last July, JP Morgan moved its Bermuda Hedge Fund Services operations off the Island, with 27 staff impacted.

Schroders, which has had a presence in Bermuda for some 50 years, is a London-based global asset management firm, with around $240 billion under management as of the end of last year.

Paul Forshaw, Schroders head of Insurance Asset Management, said: "Our focus is on developing our investment management relationships with Bermuda's insurance community.

"The Island's insurance companies increasingly require better investment returns and more capital efficient portfolios. Our investment teams have delivered outstanding performance across a range of asset classes, and we have the expertise to design, manage and service capital efficient portfolios. Bermuda is increasingly important to us."

David Burns, head of Schroders in Bermuda, said: "The Schroders office in Bermuda will continue to develop relationships and business with the insurance and captive insurance community on the Island, working as part of the London-based Insurance Asset Management team and supported by the product and investment specialists across the Schroder global network."