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State Street Discloses PE Segment Growth
The Boston financial services firm sees growth in PE administration biz despite a slowdown within certain industries.
August 26, 2008
State Street said Tuesday that its private equity fund administration business oversees more than $100 billion on behalf of buyout, venture capital and related investment managers.
The fund administrative team serves more than 100 private equity and venture capital sponsors as well as fund of fund managers, representing more than 350 funds around the world.
The Boston financial services firm has experienced growth in its private equity administration business despite a slowdown within certain industries, according to Jack Klinck, executive vice president and global head of State Street's alternative investment solutions team.
"Our total assets under administration have grown by approximately 20% since establishing our dedicated service offering, and we look forward to building on this strong foundation," he said in a statement.
State Street’s roughly 250-employee private equity fund unit provides a wide range of administrative offerings to financial sponsors including accounting and tax services. The group, established in 2007, has amassed $14 billion in private equity assets this year, representing 27 funds, and also formed eight new client relationships.
Its growth over the past year reflects the increasing prominence the alternative investment business is receiving among institutional investors, said a State Street spokesperson.
A $28 billion market-capitalized institutional asset manager, State Street does not publicly disclose its private equity clients by name, according to the spokesperson.
The Beantown institution, which manages $1.9 trillion in assets, fortified its private equity fund business with the acquisitions of Investors Financial Services Corp. and Palmeri Fund Administrators last year. The private equity fund team is part of State Street’s alternative investment solutions, a unit that employs more than 2,200 professionals spread between Boston, New York, New Jersey, Ireland, London, Tokyo, Toronto and Sydney, Australia.
According to State Street, which also runs a private equity index that is based on quarterly statistics gathered by its private edge group, the long-term returns for private equity funds remain favorable.
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