Investment research provider Morningstar is to take over the institutional hedge fund database of InvestorForce, a US-based financial software company, in a deal that will create the largest and most comprehensive investment databases available. Morningstar is expected to pay up to $10 million for the new database, which is used by pension consultants among others in managing clients' investments.
The transaction will net Morningstar more than 450 customers in the form of institutional consultants, private and institutional investors and asset managers.
Commenting on the agreement, chairman and CEO of Morningstar Joe Mansueto said: "This acquisition will strengthen our institutional presence by increasing our global client base, significantly expanding our hedge fund and separate account databases, and enhancing our software tools.
"Our goal is to bring transparency to hedge funds and separate accounts in much the same way as we did for mutual funds more than 20 years ago."
Following the integration of the new database into Morningstar's existing research tools, the company will cover an estimated 6,000 active funds worldwide.
