BNY Mellon is in negotiation with Deutshe Asset & Wealth Management (DeAWM) to provide fund administration outsourcing services, representing approximately $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.
Upon the deal closing, it is estimated that 80 members of the DeAWM global real estate fund finance team would transfer to BNY Mellon to become part of its alternative investment services organization.
Samir Pandiri, executive vice president and CEO of asset servicing at BNY Mellon, says the relationship would allow the firm to “build a more integrated real estate accounting, operations and client reporting.”
He added: "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."
Pierre Cherki, head of alternatives and real assets for DeAWM, says they are “excited” to expand their relationship with BNY Mellon and that: “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."
CEO of BNY Mellon’s alternative investment services business, Frank La Salla, says: "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."
"DeAWM is at the forefront of innovation and service delivery as sophisticated real estate managers [are seeking] out the broader capabilities of a full-service fund administrator."
It is expected that an agreement will be signed before the end of 2014.
