DeAWM in exclusive talks to outsource fund administration services to BNY Mellon, offering direct real estate investors access to enhanced services and solutions; BNY Mellon would become one of the largest real estate fund administrators in the market; Partnership underscores rising demand for outsourced services for real estate assets
NEW YORK, July 2, 2014 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, today announced that it has entered into exclusive negotiations with Deutsche Asset & Wealth Management (DeAWM) to provide fund administration outsourcing services, representing roughly $47.6 billion in assets under administration.*
Under the proposed agreement, DeAWM would outsource its real estate fund finance, fund accounting, asset management accounting, and client and financial reporting functions to BNY Mellon. It is anticipated that approximately 80 members of the DeAWM global real estate fund finance team would transfer to BNY Mellon and become part of its Alternative Investment Services organization, conditional upon the deal closing.
"This strategic relationship will enable BNY Mellon to further build a more integrated real estate accounting, operations, and client reporting offering that leverages DeAWM's global presence," said Samir Pandiri, executive vice president and CEO of Asset Servicing at BNY Mellon. "We are committed to retaining the experience and expertise of DeAWM's global fund finance team and will rely on these valued employees to continue to drive the growth of our real estate fund administration business."
"We are excited to expand our longstanding relationship with BNY Mellon to better serve our clients," said Pierre Cherki, head of Alternatives and Real Assets for DeAWM. "This partnership will enable us to improve operational efficiency by leveraging the global footprint and resources of one of the world's leading investment servicing companies."
"With the changing regulatory environment and investor-driven shifts into other alternative investments, the market for real estate asset servicing is poised for continued growth," said Frank La Salla, CEO of BNY Mellon's Alternative Investment Services business. "DeAWM is at the forefront of innovation and service delivery as sophisticated real estate managers seek out the broader capabilities of a full-service fund administrator."
It is currently expected that an agreement will be signed before the end of the year. Any agreements are subject to regulatory and other approvals and notifications, including certain workers councils. Without these approvals, the transaction cannot take place as currently described.
Deutsche Asset & Wealth Management
With $1.29 trillion of assets under management (as of March 31, 2014), Deutsche Asset & Wealth Management¹ is one of the world's leading investment organizations. DeAWM offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices. DeAWM is one of the world's largest managers of alternatives investments with $144.4 billion in assets under management, of which $76.5 billion is managed by DeAWM's Alternative & Real Assets business globally (as of March 31, 2014).
BNY Mellon is a leading administrator of alternative assets, including single manager hedge funds, funds of hedge funds and private equity, with more than $645 billion of alternative assets under administration and/or custody.
BNY Mellon's Asset Servicing business supports institutional investors in today's fast-evolving markets, safekeeping assets and enhancing the management and administration of client investments through services that process, monitor and measure data from around the world. We leverage our global footprint and local expertise to deliver insight and solutions across every stage of the investment lifecycle.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of March 31, 2014, BNY Mellon had $27.9 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Learn more at www.bnymellon.com, or follow us on Twitter @BNYMellon.
SOURCE BNY Mellon
¹ Deutsche Asset & Wealth Management is the brand name of the Asset Management and Wealth Management division of the Deutsche Bank Group. The legal entities offering products or services under the Deutsche Asset & Wealth Management brand are listed in contracts, sales materials and other product information documents.
*Gross asset value as of May 31, 2014.
The information presented in this news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, the timing and signing of the proposed agreement and any regulatory or other approvals. These statements are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond BNY Mellon's control). Factors that could cause BNY Mellon's results to differ materially can be found in the risk factors set forth in BNY Mellon's Annual Report on Form 10-K for the year ended December 31, 2013 and BNY Mellon's other filings with the Securities and Exchange Commission. All statements in this news release speak only as of the date of this news release, and BNY Mellon undertakes no obligation to update any statement to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events.
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