SEI has announced the launch of depositary services for Luxembourg alternative investment funds (AIFs).
With depositary assets growing from USD17 billion in 2018 to USD100 billion in 2024, SEI writes that it has experienced significant demand for this service and already provides depositary services to more than 430 funds from other fund centers.
SEI writes that it is the largest fund administrator for private market funds in Luxembourg that are managed by a US firm and the largest private credit fund administrator by assets globally.
Over the last two decades, private markets have consistently outperformed corresponding public markets indexes. However, as the demand for these investments continues to grow, asset managers are managing a complex ecosystem of providers to support their operational footprint. The launch of these services in Luxembourg will complement SEI’s offering that includes fund administration, registrar and transfer agent, and regulatory reporting services—providing asset managers with a single point of contact for their technology and operations requirements.
Bryan Astheimer, Head of SEI’s Investment Managers business, EMEA, says: “The demand for alternatives and European private markets continues to grow, and investment managers of all sizes are looking to expand their investor base and introduce new sources of capital, and this launch further underscores our growth and commitment in Luxembourg. Our strategic focus on scaling our global operational footprint supports our clients to efficiently launch funds—while meeting compliance requirements in different domiciles.
“The addition of our depositary services not only enhances our comprehensive offering across Europe, but it also positions us well to capitalise on these trends and opportunities to drive growth for our clients and SEI.”
SEI has delivered depositary services in Ireland for 25 years, and the company is the largest non-bank depositary in Ireland by assets under management (AUM) and the second biggest depositary in Ireland for servicing non-Irish funds by AUM.
Depositary services in Luxembourg will further support funds that primarily invest in private assets, the firm says, adding that alternative investment fund managers can access the company’s depositary services as part of a suite of fund administration services or on a standalone basis. Services include:
· Cash flow monitoring
· Oversight
· Ownership verification
· Safekeeping of assets
SEI can also provide depositary services to non-European Union managers looking to market non-EU funds to European Union investors under the Depo Lite Regime.
