BNY Mellon Alternative Investment Services Introduces Side Pocket Accounting Feature for Hedge Fund Managers

Delivers more options to manage capital flows between main and side pocket holdings

Jun 10, 2010, 08:05 ET from BNY Mellon

NEW YORK, June 10 /PRNewswire-FirstCall/ -- BNY Mellon Alternative Investment Services (AIS), a global leader in alternative and hedge fund administration, has introduced enhanced accounting and reporting functionality for side pocket accounts and special purpose vehicles (SPVs).  The new service offers hedge fund managers greater flexibility in structuring their funds and managing illiquid or long-term assets.

Delivered via BNY Mellon's proprietary fund accounting platform, Praeeo, the automated service enables fund managers to easily segregate illiquid investments.  Capital and/or earned income, along with applicable profit-carry forward, can be automatically moved from the side pocket to the main or "trading" portfolio, giving fund managers more ways to manage realized events within the side pocket.  In addition, flexible investor statement options allow hedge fund managers to offer greater transparency to their investors across both liquid and side-pocketed holdings.

"Hedge fund clients utilize side pockets and SPV structures in a variety of ways," said Rick Stanley, head of product management for BNY Mellon AIS.  "Some use them to support share classes invested in long-term assets as an investor option, while others might segregate illiquid investments as part of a fund restructuring due to market conditions.  Whatever the need, this new service offers clients more options and improved operational efficiency in managing capital flows between their main and side pocket holdings."

The enhanced functionality is supported in both share- and capital-based hedge fund structures.  More than 50 funds with special purpose vehicles and side pockets are currently using the new service.

BNY Mellon Alternative Investment Services – a leading administrator of alternative assets, including single manager hedge funds, funds of hedge funds, and private equity – has $250 billion of assets under administration and an extensive global presence, including locations in Bermuda, the Cayman Islands, Guernsey, Hong Kong, Ireland, Japan, Luxembourg, Singapore and the United Kingdom, as well as U.S. offices in five states.  In addition to alternative asset administration, BNY Mellon offers a wide range of cash management, foreign exchange, collateral management, trust, operational outsourcing and custody services to the alternative investment industry.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $22.4 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.5 trillion per day. Learn more at www.bnymellon.com.

The information provided herein is not investment, legal or tax advice and is provided on an "as is" basis, BNY Mellon disclaiming all warranties of any kind to the fullest extent permitted by law.

SOURCE BNY Mellon



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