Viteos Fund Services is on the block: sources

Credit Suisse is advising on the Viteos auction, the people said.

Somerset, New Jersey-based Viteos provides back-office outsourcing for the hedge fund industry. A sale of Viteos is valued at about $100 million, said one of the sources, a banker.

However, Viteos CEO Shankar Iyer said, “The company is not up for sale,” adding, “We’re excited about the global growth of the company.” Iyer noted that a shareholder could sell its stake in the company, but he declined further comment. 

Credit Suisse invested in Viteos in 2007. It’s unclear how much the bank invested, but the stake was “sizeable,” according to press reports.

It’s not clear what stage the auction is at. Viteos is expected to draw interest from private equity firms and strategics. “We have strong interest in [Viteos],” one PE executive said.

In 2011, Lovell Minnick Partners sold ALPS Fund Services Inc, a provider of back-office services to hedge funds and mutual funds, to DST Systems for $250 million. FTV Capital also invested $30 million in Apex Fund Services, which offers middle- and back-office fund administration, that year.

Credit Suisse declined comment.