BNY Mellon has signed an agreement with Deutsche Asset & Wealth Management (Deutsche AWM) to provide real estate and infrastructure fund administration services, representing roughly $46.3bn in assets under administration.
Last July, BNY Mellon and Deutsche AWM had entered into exclusive negotiations to complete an agreement. Terms of the deal, which closed effective February 1, were not disclosed.
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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.
BNY Mellon executive vice president and CEO of asset servicing Samir Pandiri said, "As investors shift into other alternative investments, the market for real estate asset servicing is poised for solid growth. 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."
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By GlobalDataDeutsche AWM head of alternatives and real assets Pierre Cherki 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."
