Well, what have we here? It's an article from the Journal's man on the accounting beat, Michael Rapoport:
KPMG LLP is going long on the market for hedge-fund services. The New York accounting firm on Thursday agreed to buy Rothstein Kass, a New Jersey firm that caters to hedge funds and other alternative investment firms.
And the Journal confirms it:
Buying Rothstein Kass would make KPMG the largest auditor of hedge funds based on client numbers, up from fifth currently, according to data compiled by research firm AuditAnalytics.com. Ernst & Young LLP currently holds the top spot.KPMG also would gain some of the biggest names in the hedge-fund world as clients, including Paulson & Co., Brigade Capital Management LLC and Pennant Capital Management LLC.Terms of the deal weren't disclosed. KPMG executives said it is the firm's biggest in terms of the acquired firm's revenue and employees since the merger of Peat Marwick International and Klynveld Main Goerdeler that formed the current KPMG in 1987.KPMG is seeking to tap into the booming hedge-fund-services business. According to HFR, which tracks the hedge-fund industry, total hedge-fund assets have grown to a record $2.7 trillion in the first quarter of 2014—nearly triple the $972.6 billion of 10 years ago—and growth is expected to continue.
"This puts KPMG at the forefront of the hedge space when investors are shifting capital to alternatives like hedge funds," said John Veihmeyer, KPMG's global chairman.