Deutsche Asset to outsource $47.6 billion real estate fund

Windsor Genova – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Deutsche Asset & Wealth Management (DeAWM) is seeking to outsource the administration of its $47.6 billion real estate fund to investment management and investment services firm BNY Mellon.

The two firms announced Wednesday they are in negotiation to strike the deal wherein DeAWM will outsource its real estate fund finance, fund accounting, asset management accounting, and client and financial reporting functions to BNY Mellon. Under the proposed deal, 80 members of the DeAWM global real estate fund finance team would transfer to BNY Mellon and become part of its Alternative Investment Services organization.

“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,” said Samir Pandiri, executive vice president and CEO of Asset Servicing at BNY Mellon. “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.”

“We are excited to expand our longstanding relationship with BNY Mellon to better serve our clients,” said Pierre Cherki, head of Alternatives and Real Assets for DeAWM. “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.”

“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,” said Frank La Salla, CEO of BNY Mellon’s Alternative Investment Services business. “DeAWM is at the forefront of innovation and service delivery as sophisticated real estate managers seek out the broader capabilities of a full-service fund administrator.”

The two firms hope to sign an agreement before the end of the year. Any agreements are subject to regulatory and other approvals and notifications, including certain workers councils.

Meanwhile, a new real estate marketing tool that could enhance a potential BNY Mellon-DeAWM partnership is Nestbuilder, a portal where real estate professionals can connect with potential customers by putting up interactive listings, including virtual tours and microsites.

Owned and operated by RealBiz Media (OTC: RBIZ), Nestbuilder has already started to gain traction in its niche with more 350,000 users, whose video listing are also syndicated and networked with experts in the field.

RealBiz Media is a publicly traded company that offers its stocks over-the-counter. The company’s stocks closed at $0.15 on Friday.

BNY Mellon is a leading administrator of alternative assets, including single manager hedge funds, funds of hedge funds and private equity. It has more than $645 billion of alternative assets under administration and/or custody.

With $1.29 trillion of assets under management as of March 31, DeAWM is one of the world’s leading investment organizations offering individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.

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