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Oh Look, KPMG Is Acquiring Rothstein Kass

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.
As you may recall, we started talking about this acquisition back in February and it has been a spirited topic of conversation ever since: rumors of people leaving RK in droves, one guy baiting refugees and even compliance driven clues.
Three weeks ago we explained, with one chart, why KPMG wanted RK:

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 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.
With this acquisition, the House of Klynveld will do more than tap into the hedge fund business. They're on top of the pile. And KPMG Chairman John Veihmeyer knows it:
"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.
That's right, people! Hugs all around!
I'm sure there are some people that would like to comment on this, so feel free to do that now.

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