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From the Opalesque team:

Mergers and acquisitions in the fund administrator space kicked off 2010 with the announcement that BNY Mellon acquired PNC Global Investment Servicing. The $2.31bn acquisition, expected to close during 3Q2010, pushes BNY Mellon up two spots in the world of alternative asset fund administration, making it the third largest in the world. Citco and State Street still top off the list in first and second place respectively.

According to research firm Carbon360's 2009 Fund Administrator Handbook, "Mergers and acquisitions among administrators help executives overcome the issues of scale, providing them with the ability to reach more hedge funds and provide more services. The required skill level of the personnel remains relatively high, reflecting the hedge fund expertise that is needed to provide top-line revenue growth, according to experts. Revenue growth also is largely driven by scale." M&A within fund administrators saw its second highest rate of activity during 2009 with seven mergers (as tracked by the research firm since 2001).

According to a press release published by BNY Mellon, the acquisition will seek to enhance the firm's managed account platform, performance reporting capabilities and business intelligence tools.

The acquisition was part of PNC Financial Services money rai......................

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