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, about half of them working in the company’s private-equity services.

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

The Royal Gazette understands that the asset management business Schroders does in Bermuda will continue unchanged.

It is expected that JP Morgan will keep the private-equity services operation in Bermuda.

JP Morgan Worldwide Securities Services announced today 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.

Markus Ruetimann, Group chief operating officer at Schroders, said: “JP Morgan is one of our most trusted fund service partners and we believe that this transaction will ensure the continued delivery of a high standard of service to our private equity administration clients.”

Read more in the Business section of tomorrow’s edition of The Royal Gazette