Strategy

BNY Mellon Enters Exclusive Outsourcing Talks With Deutsche's Wealth Arm

Tom Burroughes, Group Editor, London, 3 July 2014

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BNY Mellon has entered into exclusive talks with Deutsche Asset & Wealth Management to provide Germany’s biggest bank with fund administration outsourcing services, representing roughly $47.6 billion in assets under administration.

BNY Mellon has entered into exclusive talks with Deutsche Asset & Wealth Management to provide Germany’s biggest bank with fund administration outsourcing services, representing roughly $47.6 billion in assets under administration.

Under the proposed arrangement, Deutsche would farm out its estate fund finance, fund accounting, asset management accounting, and client and financial reporting functions to BNY Mellon. It is expected that about 80 members of the DeAWM global real estate fund finance team would transfer to BNY Mellon and become part of its Alternative Investment Services organisation, if the deal is agreed, a statement from BNY Mellon said.

“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," Samir Pandiri, executive vice president and CEO of Asset Servicing at BNY Mellon, said in the statement.

"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,” Pandiri said.

It is 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 had $1.29 trillion of assets under management as at the end of March this year, with $144.4 billion in alternative assets under management. Meanwhile, as of 31 March, BNY Mellon had $27.9 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management.

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