Deutsche Asset & Wealth Management reached a proposed agreement to outsource its real estate fund administration, with about $47.6 billion in assets under administration, to Bank of New York Mellon Alternative Investment Services.
Terms have not been finalized, said Joe Ailinger, BNY Mellon spokesman. An agreement is expected to be signed by the end of this year.
Under the proposed agreement, Deutsche would outsource its real estate fund finance, fund accounting, asset management accounting, and client and financial reporting functions to BNY Mellon.
Mr. Ailinger said the proposed deal was not an acquisition of Deutsche’s real estate fund administration business and that Deutsche would continue to have other fund administration services.
The Deutsche assets under administration would provide BNY Mellon with a huge increase in real estate AUA, to more than $50 billion, Mr. Ailinger said.
BNY Mellon’s real estate fund administration is under its private equity fund administration unit. Mr. Ailinger did not know whether real estate administration would move into a separate business unit in alternative investment services if the deal is completed.
About 80 employees of the Deutsche global real estate fund finance team would transfer to BNY Mellon Alternative Investment Services, pending the closing of the deal.
Catherine Wooters, Deutsche spokeswoman, referred all questions to BNY Mellon.