As hedge fund administrators struggle to survive in a shrinking industry, Butterfield Fulcrum Group provides the first telling example of consolidation. Bermuda-based BFG is the product of the September merger of Butterfield Fund Services and hedge-fund-servicing specialist Fulcrum Group. Private equity firm 3i, a shareholder in Fulcrum, provided most of the funding for the merger, with a $78 million investment; 3i and Butterfield Bank, which helped with the funding, will retain an equity stake.
