The Irish unit of fund administration group State Street expects to have as much as $600 billion (€440.5 billion) under management by the end of this year after its US parent completed its $4.5 billion takeover of Investors Financial Services, a firm with significant Irish interests.

The number of staff in State Street rises to 2,000 from 1,500 as a result of the transaction, which will see the group take over the operations of an Irish-based company called Investors Trust Europe.

Assets under administration and custody in Ireland rise by some $70 billion to $500 billion following the deal. "By year-end I would be pretty confident we would be over $600 billion," said Willie Slattery, chief executive of the Irish unit.

As the fund administration industry consolidates, the Investors Financial Services deal is the third recent takeover of an international fund administration group by another sector player.

Citigroup is buying Bisys and Bank of New York is buying Mellon. Like State Street and Investors Financial Services, each of these organisations have operations in Ireland. Besides Ireland and the US, it is believed that no other financial centre has operations by each of these companies.

State Street is using its acquisition to increase its presence in the hedge fund administration business. "What we would say is that it extended our market share of high-growth businesses such as hedge funds, but also offshore middle-office work," said Mr Slattery.