Last updated: 12:25 / Monday, 2 February 2015
Effective February 1

BNY Mellon and DeAWM Complete Real Estate Fund Administration Outsourcing Deal

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BNY Mellon and DeAWM Complete Real Estate Fund Administration Outsourcing Deal
  • Partnership underscores rising demand for administration services for real estate and infrastructure assets
  • Deutsche AWM will outsource its direct real estate and infrastructure fund finance, fund accounting, asset management accounting, and client and financial reporting functions to BNY Mellon

  • Up to 80 members of Deutsche AWM's fund finance team are expected to transfer to BNY Mellon and become part of its Alternative Investment Services business

BNY Mellon announced that it has signed an agreement with Deutsche Asset & Wealth Management to provide real estate and infrastructure fund administration services, representing roughly $46.3 billion in assets under administration.

Last July, BNY Mellon and Deutsche AWM announced that they had entered into exclusive negotiations to complete an agreement. Terms of the deal, which closed effective February 1, were not disclosed.

Under the agreement, Deutsche AWM will outsource its direct real estate and infrastructure fund finance, fund accounting, asset management accounting, and client and financial reporting functions to BNY Mellon. Up to 80 members of Deutsche AWM's fund finance team are expected to transfer to BNY Mellon and become part of its Alternative Investment Services business.

"As investors shift into other alternative investments, the market for real estate asset servicing is poised for solid growth," said Samir Pandiri, executive vice president and CEO of Asset Servicing at BNY Mellon. "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," Pandiri added.

"We have developed a close partnership with BNY Mellon and look forward to working with them on this innovative initiative," said Pierre Cherki, head of Alternatives and Real Assets for Deutsche AWM. "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." 

For your information...

BNY Mellon is a leading administrator of alternative assets, including single manager hedge funds, funds of hedge funds and private equity, with roughly $715 billion of alternative assets under administration and/or custody.

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