State Street Corporation has acquired Palmeri Fund Administrators, a specialist fund administrator to the private equity industry over the past 16 years, to strengthen the alternative investme
State Street Corporation has acquired Palmeri Fund Administrators, a specialist fund administrator to the private equity industry over the past 16 years, to strengthen the alternative investment servicing capabilities it has gained with the acquisition of Investors Financial Services.
‘Similar to the reason for our entrance into the hedge fund administration space in 2002, our institutional customers are increasingly expanding their use of alternative investments including private equity,’ says Jay Hooley, vice-chairman and head of global investment servicing and investment research and trading at State Street.
‘Private equity is another example of a high-growth area that is in considerable demand from our institutional investor customers. We expect the team and capabilities that we now have dedicated to this growing market segment will allow us to further capitalise on market opportunities and promote our continued industry leadership.’
Frank Palmeri, former chief executive officer of the eponymous firm, will lead State Street’s private equity servicing initiative, under the direction of Jack Klinck, executive vice-president and head of global investment product services.
Palmeri brings more than 25 years of private equity experience to State Street, which now services around USD80 billion in private equity assets for nearly 100 fund sponsors managing more than 400 primary funds worldwide.
‘Customers can now benefit from the combined strength of three leading organisations for all of their private equity servicing needs,’ Klinck says. ‘This enhanced offering for private equity servicing further strengthens our industry leadership in servicing for alternative investments.’
At its launch in 1991, Palmeri Fund Administrators was the first company to offer a comprehensive outsourced fund administration solution for both direct managers and institutional sponsors of private equity funds.
Following its acquisition of Investors Financial Services, State Street took on a dedicated private equity servicing business that has been steadily growing for nearly 10 years.
State Street will also continue to provide private equity performance and analytics services through its Private Edge Group, which it has offered for more than a decade. Private Edge provides detailed analyses of customers’ private equity portfolios through a fully automated web-enabled environment.
