The Bank of New York Mellon has launched an enhanced service platform to handle outsourced administrative processing duties for private equity firm clients.
The new servicing platform introduces a range of reporting, administration and monitoring services provided by the bank via a Web portal for different types of PE investments—from buyouts and venture capital to real estate and hybrid hedge funds deals, according to BNY Mellon.
The institution says it is targeting a market where the level of outsourcing remains low, with only about 10 to 15 percent of U.S. private-equity firms going outside for fund administration. The platform includes the offerings acquired from the bank’s May 2008 acquisition of the hedge funds administrative services business of Dallas-based LAMP Technologies.
"Recent market events and increased reporting requirements from institutional investors are compelling private equity firms to reassess their back office operations from a cost effectiveness standpoint," said Brian Ruane, evp and head of financial institutions client management at the bank.