BNY Mellon has signed an agreement with Deutsche Asset and Wealth Management (AWM) to provide real estate and infrastructure fund administration services, representing $46.3 billion in assets under administration.
In July 2014, the two companies announced that they had entered in to negotiations, but when the deal did not close until 1 February 2015. The terms were not disclosed.
BNY Mellon will take care of Deutsche AWM’s direct real estate and infrastructure fund finance, as well as providing fund and asset management accounting and client and financial reporting functions.
About 80 staff members from the Deutsche AWM fund finance team are expected to transfer to BNY Mellon, becoming a part of their Alternative Investment Services team.
Samir Pandiri, executive vice president and CEO of asset servicing at BNY Mellon, said: "As investors shift into other alternative investments, the market for real estate asset servicing is poised for solid growth."
He added: "Investment managers are turning to asset servicers like us who are better positioned to make the necessary investments in technology and people to deliver a higher level of service.”
"This important new relationship will allow us to develop a more integrated accounting and client reporting solution that leverages Deutsche Asset & Wealth Management's global presence and team, and help propel the growth of our real estate fund administration business."
Pierre Cherki, head of alternatives and real assets for Deutsche AWM, said: "We have developed a close partnership with BNY Mellon and look forward to working with them on this innovative initiative."
"Our goal is to provide clients the best service possible in this area and this strategic relationship will enable us to benefit from the resources of one of the world's leading investment servicing companies."
