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State Street?s Private Equity Assets Under Administration Grew by 60 Percent in 2008

^{Published on 2009-01-28 07:27:23, Last Modified on 2009-01-28 07:28:09 - Market Wire}
 

BOSTON--([ BUSINESS WIRE ])--State Street Corporation (NYSE: STT), the world's leading provider of financial services to institutional investors, announced today that assets under administration serviced by its private equity fund team grew by 60 percent in 2008. State Street now provides full-service fund administration services to more than 400 primary funds and more than $138 billion in assets.

"Even with the slowdown in the overall financial markets, private equity fund managers are still looking to third party administrators to provide greater efficiencies, more consistent reporting and cost savings for their funds," said Jack Klinck, executive vice president and global head of State Street's Alternative Investment Solutions team. "Customers also recognize that experienced third party providers can stay ahead of changing requirements throughout the fund lifecycle, understand the nuances of each fund's structure, and adapt accordingly."

In conjunction with the Global Absolute Return Congress conference held in late 2008, State Street conducted a survey of institutional investors soliciting their views on alternative investing. The survey respondents represent institutions that collectively manage approximately $1 trillion in total assets and include corporate, pension plans, endowments and foundations and insurance companies.

The survey concluded that institutional investors continue to maintain a favorable view of private equity funds. Twenty percent of institutional investors responding to the study allocated more than 10 percent of their portfolios to this asset class and another third allocated more than five percent. Over the next 12 months, half of these institutional investors (49 percent) plan to increase their allocations to private equity funds. The complete results of the survey will be available in the coming weeks.

"One of the encouraging signs for alternative investments in uncertain financial markets is the increased interest in private equity funds by investors with a long-term investment horizon," added Klinck.

State Street's private equity services is part of its Alternative Investment Solutions team which includes more than 2,400 employees located in Boston, Ireland (Drogheda, Dublin, Naas), London, New York City, Tokyo, Toronto, Sydney and Fair Lawn, New Jersey.

State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $12 trillion in assets under custody and $1.4 trillion in assets under management at December 31, 2008, State Street operates in 27 countries and more than 100 geographic markets worldwide. For more information, visit State Street's web site at [ www.statestreet.com ].