Top-ranked accounting and consulting firm Rothstein Kass, based here, which specializes in serving the alternative investments industry, said that it is selling its interests in RK Consulting, the firm's investment fund administration affiliate, to stave off independence issues.
"Due to increasing regulation in the accounting industry, and to ensure our independence and objectivity, it was in the best interest of Rothstein Kass, its clients and employees to divest the firm's interests in the fund administration business," Steven Kass, a member of the firm's executive committee, said of the move.
"Although providing investment fund administration was complementary to our other service areas, the regulatory environment is too volatile and we did not want to be in a position where our independence might be compromised," added executive committee member Howard Altman.
The firm, which currently provides accounting, audit and tax services to over 1,500 investment funds, including domestic and offshore hedge funds, funds of funds, and private equity funds, said that it will continue to build its financial services practice focusing on providing accounting, audit and tax services to the alternative investments industry, in addition to other sectors in the financial community.
RK Consulting will be acquired by The Bisys Group Inc., a provider of outsourcing solutions for the financial sector. Terms were not disclosed. The transaction was expected to close sometime early in 2005.
Upon completion of the deal, Kass and Altman will succeed Harris Rothstein, managing principal of Rothstein Kass, as co-managing principals.
In a statement, Rothstein said that Kass and Altman, who will also sit on the board of directors once the deal is closed, "will help ensure a smooth transition" during the period of change.
Rothstein Kass ranked No. 22 among the Accounting Today Top 100, with revenue of $72 million.
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