Bermuda-based Equinoxe Alternative Investment Services Holdings Ltd. yesterday announced a strategic merger with MadisonGrey Holdings.

The transaction creates a global hedge fund administrator with combined assets under administration of more than $7 billion, which catapults it into the rankings of the top 10 largest independent administrators.

This increased size will enable servicing of funds onshore in the US through the Atlanta office, as well as offshore in Bermuda, Cayman, Mauritius, and in Europe through Ireland. It will provide enhanced opportunities for dedicated manager service in more time zones.

The new US entity, to be known as Equinoxe Alternative Investment Services (USA) Inc., will increase to 50, the number of employees across the five Equinoxe offices servicing 150 funds. With its superior technology platform, Equinoxe is capable of servicing the full range of hedge fund strategies from core fund administration services to middle office outsource solutions.

Stephen Castree, CEO of Equinoxe says, "We are thrilled to be able to create a global force through this strategic merger. The integrated companies will extend the full service platform onshore in the USA, a cornerstone of our expansion plans, whilst continuing to leverage our institutional technology capabilities with a highly focused boutique service model, our key differentiator in the market."

Charles Thornton, president of MadisonGrey Holdings said: "The benefit to our clients of this merger will be seen in the expanded international geographic reach, additional technology and services, plus the greater resources that we can offer as a combined group."

Mr. Castree added: "Assets under administration have become a significant factor in being able to secure new business in the industry. Due diligence teams not only complete extensive examinations of service provider technology and procedures, but also evaluate the composition and assets of the client base.

"With this combination of Equinoxe and MadisonGrey, we are well positioned to meet the needs of emerging, existing and mature managers alike with our full suite of services and capabilities offered on a global basis."

Equinoxe was founded in 2007 by a group of experienced hedge fund administration professionals. Insurer the XL Group made a significant minority investment in the firm in late 2007. Equinoxe is scheduled to open an office in Singapore next year.