Clearstream has expanded its post-trade services for hedge funds by acquiring a Cork-based business from fund administration provider Citco.

Clearstream has agreed to buy Citco's hedge fund custody processing business in Cork for a "sum in the mid double digit million euro range", the two companies said today.

No further financial details of the deal were disclosed.

Citco processes complex trade orders from financial institutions to hedge funds. It currently provides support for over 2,000 funds with net assets in excess of €740 billion.

Under the terms of the deal, Citco's 300 employees will transfer to Clearstream, doubling the size of the settlement company's hedge fund processing division. 

Clearstream, which is owned by Deutsche Boerse, will also license Citco's custody IT infrastructure.

Philippe Seyll, head of investment funds services at Clearstream, said its clients had become comfortable again with alternative investment funds after retreating from them at the height of the financial crisis.

Appetite to invest in more sophisticated instruments was still growing and the division was expected to expand further in the future, he added.