LaSalle Bank, a Chicago-based subsidiary of ABN Amro, has declared medium-term plans to employ up to 250 people in a new fund administration business at the IFSC in Dublin.

In a move to target the European hedge fund sector, LaSalle Global Fund Services will carry out back-office administration in Dublin for third-party funds.

"In terms of assets, we're targetting getting to around €2 billion by the end of this year," said Morgan Downey, managing director of the operation.

"We'd certainly be looking to be managing around €5 billion by the end of 2008."

LaSalle hopes to increase its IFSC staff to 30 or 35 people by the end the year from a start-up group of 14, he said.

Its business plan anticipates that employment will grow to 70 by the end of 2008 and to 200 or 250 after five years.

In competition with rivals such as PFPC International, Fortis, Citco and HSBC, the firm aims to be a significant provider of hedge fund administration services in the European market. It will also provide custody and treasury services.

Mr Downey said that he did not anticipate that LaSalle's plans would change if Barclays Bank executes its proposed takeover of ABN Amro.

"As far as we're concerned it's business as usual. We're ploughing ahead. I don't see any threat," he said. The development marks an expansion of LaSalle's offering to alternative investment managers.

The bank has served as trustee, custodian or agent on more than $1.1 trillion (€823.5 billion) in assets. The emphasis of its capital markets offering is on securitisation trustee and agency services, corporate trust, institutional custody and escrow services.

Mr Downey is a former managing director in Ireland of a unit of the Fortis group. Other senior figures in the new IFSC operation include Suzanne Keane, head of fund accounting and client management; Marion Moran, head of shareholder services; Joanne Gill, head of operations; and Barry O'Brien, head of business development.