Key Takeaways
- • State Street Corporation completed the integration of Morgan Stanley Real Estate Investing's (MSREI) fund servicing operations, which commenced in February 2012 and transferred more than 150 MSREI accounting, operations, and technical staff to State Street along with proprietary real estate servicing technology.
- • MSREI manages approximately $36 billion in assets under management across all investment vehicles, with State Street now providing accounting and administrative services on a global basis following the integration.
- • State Street's Alternative Investment Solutions (AIS) group, which executed the integration, manages approximately $1.1 trillion in alternative assets as of December 31, 2012, across hedge funds, private equity funds, real estate funds, and institutional investor mandates with more than 3,000 employees globally.
- • The integration strengthens State Street's competitive positioning in real estate fund servicing by addressing rising operational and technology costs, complex fund structures, and increasing governance and transparency demands in the alternative asset management sector.
- • Michael Levy, global CFO and COO of MSREI, characterized the integration as "seamless," indicating successful operational continuity and affirming State Street's technological capabilities and commitment to customer service standards.
Summary
State Street Corporation has completed the integration of Morgan Stanley Real Estate Investing's fund servicing operations, concluding a transition that began in February 2012. The acquisition involved the transfer of more than 150 MSREI personnel across accounting, operations, and technical functions, along with the transfer of proprietary real estate servicing technology to State Street's infrastructure. This integration consolidates fund administration capabilities under State Street's Alternative Investment Solutions (AIS) division.
MSREI, which oversees $36 billion in assets under management, now relies on State Street to deliver accounting and administrative services on a global basis across all of its investment vehicles. According to Michael Levy, global CFO and COO of MSREI, "State Street's integration of our real estate fund servicing operations has been seamless, and we have been very pleased with their capabilities, technologies and commitment to customer service." Levy further noted that State Street's leadership in servicing alternative assets enables MSREI to remain focused on delivering investor returns without managing operational infrastructure.
State Street's AIS group now manages approximately $1.1 trillion in alternative assets as of December 31, 2012, supported by a team of more than 3,000 employees across multiple global offices. The group provides middle office support, fund administration, risk analytics, and credit services to hedge funds, private equity funds, real estate funds, and institutional investors. George Sullivan, executive vice president and global head of State Street's AIS group, characterized the integration as a strategic response to industry pressures: "Rising operational and technology costs, complex fund structures, increased governance and transparency demands are just some of the factors driving the need for a strong administration partner in real estate fund management." Sullivan emphasized that the acquisition of MSREI's servicing operations further strengthens State Street's ability to address the evolving requirements of the real estate fund management sector.
MSREI, which oversees $36 billion in assets under management, now relies on State Street to deliver accounting and administrative services on a global basis across all of its investment vehicles. According to Michael Levy, global CFO and COO of MSREI, "State Street's integration of our real estate fund servicing operations has been seamless, and we have been very pleased with their capabilities, technologies and commitment to customer service." Levy further noted that State Street's leadership in servicing alternative assets enables MSREI to remain focused on delivering investor returns without managing operational infrastructure.
State Street's AIS group now manages approximately $1.1 trillion in alternative assets as of December 31, 2012, supported by a team of more than 3,000 employees across multiple global offices. The group provides middle office support, fund administration, risk analytics, and credit services to hedge funds, private equity funds, real estate funds, and institutional investors. George Sullivan, executive vice president and global head of State Street's AIS group, characterized the integration as a strategic response to industry pressures: "Rising operational and technology costs, complex fund structures, increased governance and transparency demands are just some of the factors driving the need for a strong administration partner in real estate fund management." Sullivan emphasized that the acquisition of MSREI's servicing operations further strengthens State Street's ability to address the evolving requirements of the real estate fund management sector.
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