BNY Mellon has been appointed as depositary for a significant proportion of the alternative investment holdings of Alceda Asset Management GmbH in Germany and Alceda Fund Management SA in Luxembourg.
The mandate also covers assets held in alternative investment funds issued by Aquila Capital, an investment company for alternative investments and investments in real assets.
Both Aquila Capital and Alceda are part of the Aquila Group, which currently has over 250 staff and EUR7.2bn assets under management.
The new partnership sees BNY Mellon for the first time providing depositary and related services in Germany for closed alternative investment funds investing in property, agriculture, private equity and renewable energies.
In addition, BNY Mellon and Alceda Asset Management GmbH (as the designated portfolio management company on behalf of Aquila Capital in Germany) will work together to establish the first agricultural fund issued under the terms of the new legislation. Further funds are already in the planning stage.
Following the implementation in Germany of the Alternative Investment Fund Managers' Directive (AIFMD) and the new Capital Investment Act (Kapitalanlagegesetzbuch – KAGB) on 22 July 2013, closed-end funds, which were previously unregulated, have to be managed by capital investment companies regulated by the BaFin, the Federal Financial Supervisory Authority. Assets belonging to closed alternative investment funds (AIFs) are now required to be held by a depositary, usually a custodian bank.
Michael Sanders (pictured), chairman of the board of Alceda Fund Management SA, says: "BNY Mellon is the ideal partner for us, given its expertise across our key asset classes and its position as a global market leader. The new statutory regulations here in Germany have placed an ever-greater focus on transparency and investor protection, and these are both areas of strength for BNY Mellon. We are very much looking forward to the cooperation."
Thomas Brand, head of investment services at BNY Mellon in Germany, says: "BNY Mellon is already the third-largest service provider in the field of alternative investments globally and has a strong reputation for innovation, regulatory insight and service provision. We are pleased to be able to harness our wealth of knowledge and experience for the benefit of such a valued client as Alceda and look forward to supporting them as they continue to grow and transform their business.”