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BNY Mellon AIS tops USD400bn hedge fund AuM

BNY Mellon Alternative Investment Services (AIS) has topped USD400 billion in assets under administration, making it the second largest provider of solutions to hedge funds, funds of hedge funds, and private equity investments globally.  

Since 2008, BNY Mellon AIS has doubled its alternative assets under administration, fuelled by increased market share and its acquisition of PNC’s Global Investment Servicing business last July.  The company has seen growth both in the number and complexity of fund structures serviced, plus strong demand for its ‘prime custody’ offering as more hedge fund managers opt for an independent third-party provider to handle custody, cash management and other specialised services.  AIS is custodian for more than USD120 billion in hedge fund assets, in addition to the over USD400 billion it currently administers.

"Alternative asset service providers will increasingly be looked upon to provide both the alternative solutions as well as the transparency managers want," says Brian Ruane (pictured), BNY Mellon chief executive officer of Alternative and Broker-Dealer Services.  "Reaching this milestone is an achievement in itself, but the way in which we’ve grown our business globally attests to our ability to meet client needs in an evolutionary phase for the industry."  

Ruane noted global macro hedge funds and those offering exposure to commodities, distressed debt, or requiring ‘prime custody’ services, are among the fastest growing segments of the global hedge fund services business.

"We expect these trends to hold steady in 2011," he adds. "Investments in our industry-leading technology have enabled us to extend our capabilities to the widest array of hedge funds, fund of hedge funds, and private equity managers and their investors," said Marina Lewin, head of global sales for AIS.  "Alternative managers continue to see growth, and we believe BNY Mellon is uniquely positioned to support this rapidly expanding market worldwide."

BNY Mellon Alternative Investment Services is a leading servicer of single manager hedge funds, funds of hedge funds, and private equity assets, with more than USD400 billion in assets under administration. It operates globally in Bermuda, the Cayman Islands, Guernsey, Hong Kong, Ireland, Japan, Luxembourg, Poland, Singapore and the UK, plus six US states. BNY Mellon’s wide range of offerings to the alternatives industry also include cash and collateral management, foreign exchange, operational outsourcing, trust and custody, and wealth management services.

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