Category Archives: UMB Bank

A volatile and unpredictable market

AltsTech, AltsTech News, AltsTech Perspectives, UMB Bank

A volatile and unpredictable market

March 14, 2023 | Winston Crowley, Stephen DuMont and Jason Weiler | UMB

Around this time last year, much of the U.S. Treasury curve was sub 2%, the consumer price index (CPI) year-over-year had steadily been climbing (7.9% in Feb. 2022 and still on the rise), core personal consumption expenditures (PCE) year-over-year was 5.40% and the Federal Open Market Committee (FOMC) was preparing markets for Fed target rate hikes. We ultimately saw liftoff with a 25 basis point (bps) hike on March 16, 2022.

Fast forward a year: Treasuries were well north of 4%, CPI year-over-year and PCE year-over-year have remained stubbornly high (6.4% and 4.70% respectively in Jan. 2023) despite the FOMC hiking 450 bps and potentially positioned for more.

What a difference a year makes (see chart). The sharp pace of the Fed Rate increases throughout much of last year and the subsequent climb in Treasury yields resulted in escalated unrealized portfolio losses industry-wide. Significant unrealized losses were something many were unaccustomed to seeing in their portfolios for several years during the low-rate era, but the combination of the lowest rates in history during the pandemic and the fastest pace of tightening in nearly 50 years produced runaway unrealized losses.

Yet, it is important to note, the other side of those unrealized losses is that today’s reinvestment yields are much higher. Thus, the laddered portfolio many built over the years should be able to reinvest roll-off in significantly higher yields.

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Notes from the CEO: Perspective on the recent banking industry news

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Notes from the CEO: Perspective on the recent banking industry news

March 16, 2023 | Mariner Kemper | UMB

The news cycle has been dominated by the banking industry, and specifically developments related to the failures of Silicon Valley Bank (SVB) and Signature Bank. I would like to provide an update and perspective that summarizes our reaction to the events and news.

Regarding stock performance, the entire banking sector saw a significant decline in stock prices on Monday. Investors reacted to the news media and other sources without the benefit of context from UMB. After the market closed, we filed a Form-8K to explain our position.

UMB shows up as having a high “unrealized loss” position. It’s important to note that any loss only becomes realized if it is sold prior to maturity. In the rapidly rising rate environment, all banks have experienced a reduction in the value of their securities portfolio, as represented by the unrealized losses, or “AOCI.” UMB’s AOCI represents approximately 10% of our available-for-sale (AFS) portfolio balances, which is in line with peer levels. This does not impact regulatory capital ratios, which is the true measure of safety and soundness. UMB doesn’t intend to sell AFS securities.

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First to market? Three questions for your fund distribution services partner

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First to market? Three questions for your fund distribution services partner

March 7, 2023 | UMB

Asset managers seeking to be first-to-market with an investment strategy or product wrapper should develop a distribution plan as they develop the product itself. Understanding the current marketplace, onboarding requirements and platform fee economics is critical to the long-term success of your product. Due to the complex nature of distribution relationships and the many considerations that go into a successful product launch, we often consult with asset managers well ahead of any SEC filings, the drafting of a prospectus or any compliance reviews.

This upfront process allows managers to gain valuable insights from their potential distributions services partner and, when the time comes, to move faster and with greater assurance. Unfortunately, we have heard far too many times of asset managers going to market without the proper share class or fee structure to support their distribution efforts. These types of roadblocks or delays can be reduced by collaboration with an effective distribution partner in the early stages of product development.

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Market opportunity and outlook for interval and tender-offer funds

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Market opportunity and outlook for interval and tender-offer funds

February 24, 2023 | UMB

Unlisted closed-end funds (CEFs) have maintained their momentum even after several years of significant growth, surpassing $100 billion in assets under management (AUM) in 2022, an all-time record for the category, which is made up of interval funds and tender-offer funds.

Not surprisingly after colossal new-product growth in 2021, assets raised by new products slowed in 2022, which is shown in our latest research, compiled in partnership with FUSE Research Network.

The research indicates that the market for unlisted CEFs is beginning to show signs of maturation, but this set of fund structures continues to exhibit the potential for continued growth in assets.

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How the Inflation Reduction Act levels the renewable energy playing field for municipalities

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How the Inflation Reduction Act levels the renewable energy playing field for municipalities

January 30, 2023 | Scott Crist | UMB

The recently passed Inflation Reduction Act has changed the way municipalities can structure and finance their renewable energy projects. Local governments can now access renewable energy incentives directly, a means of financing projects historically unavailable to them.

Municipalities considering renewable energy projects for their communities just received a big boost from the Inflation Reduction Act (the Act) enacted by Congress in August 2022. Historically, development of renewable energy projects has been driven by federal and state incentives, including federal tax credits. Since municipalities and other 501(c)(3) organizations don’t pay taxes, they haven’t been able to take advantage of many of these incentives directly. As a result, most projects have been structured and financed through private ownership, at least for a period of time, in order to fully capture the benefit of these tax credits.

The newly created provisions of the Act changed all of this. Now there’s a new alternative that allows municipalities and tax-exempt organizations to access certain incentives directly through the receipt of direct payments from the U.S. Treasury in lieu of receiving tax credits. This provision seeks to level the playing field between taxpaying and non-taxpaying entities and eliminates the need for private ownership of renewable energy projects.

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UMB: State of the Market: Non-Traded REITs and BDCs

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UMB: State of the Market: Non-Traded REITs and BDCs

August 9, 2022 | UMB

In times of wild market volatility, alternative investments are alluring panaceas to vulnerable portfolios. Once reserved for institutional and high-net-worth investors, even some of the more exotic alternative investments are now mainstream. This report provides an overview of the current state of non-traded real estate investment trusts and non-traded business development companies, plus insights on upcoming trends in this product segment.

Uncorrelated asset vehicles such as non-traded real estate investment trusts (‘non-traded REITs’ or ‘NTRs’) and non-traded business development companies (‘non-traded BDCs’) have recently piqued the curiosity of asset managers, advisors and even retail investors.

These investment opportunities offer diversification, income, tax benefits and different risk return profiles. As the attraction of alternative investments such as NTRs and non-traded BDCs intensifies, asset managers are actively considering adding them to their product suites.

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UMB: Seven questions to help build distribution strategies for interval and tender-offer funds

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UMB: Seven questions to help build distribution strategies for interval and tender-offer funds

July 19, 2022 | James Curry | UMB

“We wish we’d talked to you six months ago” is a comment I hear often from private fund managers as they work out distribution strategies for their first registered product. Too often, managers have to backtrack when their sales, operations and investment teams aren’t on the same page. Here are seven questions drawn from practical experience to align your team—and avoid wasted time and effort.

The first six questions help define and refine a distribution strategy. The seventh is a critical one about product economics.

1. Who are your initial investors and target market?
There’s a big difference between retail investors (and their advisors) and large institutional RIAs and family offices.

Say you’ve been encouraged by retail-market RIAs to make your strategy available to their clients. It’s important to understand what they are expecting—because it may well mean your presence on mutual-fund platforms that present interval and tender-offer funds together with standard open-ended funds.

Institutional RIAs and family offices, by contrast, are unlikely to require that platform presence.

2. What platform does the RIA prefer?
There are two defined and separate distribution paths for interval and tender offer funds depending on your funds structure. Do the advisors interested in your product work primarily—or only—with funds available on a specific platform? Your fund’s valuation structure and other factors will determine which distribution path you choose and ultimately how your funds are approved and made available to the various RIAs, broker-dealers and wire houses.

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What does a custodian do for alternative investment managers?

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What does a custodian do for alternative investment managers?

June 29, 2022 | Amy Small | UMB

Legacy mutual fund managers are likely accustomed to hearing about custody requirements driven by regulation. But what does a custodian do for alternative asset managers who are not experienced in hiring a qualified custodian?

The primary duty of a third-party custodian is loss prevention by safeguarding assets. All registered funds, even those with alternative strategies, are required by law to use a custodian, who “sit between” the investment manager and the assets themselves, for everyone’s protection.

Many unregistered alternative funds—such as hedge funds and limited partnerships—also use a custodian, often at the request of one or more large investors who want the strong controls provided by third-party oversight such as compliance with anti-money laundering (AML) requirements. Or, because the ancillary services provided by a custodian support efficiency in their cash management and investor onboarding efforts.

The word “custodian” can be a bit confusing, especially in the context of alternative asset classes. The role I’m addressing here is different from the services a manager’s prime broker may provide. Private fund custody, in this case, refers to third-party oversight and processing services sometimes known as “bank custody” or “institutional custody.”

That said, like prime brokers, private fund custodians can provide a suite of services that complement the primary function. For prime brokers, sales and trading is the primary function, complemented by ancillary services such as financing.

For institutional custodians, risk reduction is the primary function, complemented by services such as:

• Servicing and settling trades

• Managing overnight cash

• Providing real-time reporting on cash availability

• Enabling straight-through processing on cash movements

• Tax Reporting

• Managing proxy and corporate actions

• Handling foreign exchange (FX) needs

• Segregating collateral

• Registering and opening foreign accounts

Not surprisingly, these private fund custody services relate to either or both securities themselves or the cash transacted for them. That intersection of securities and cash is precisely a custodian’s domain—and where it applies rigorous controls to avoid mistakes and fraud.

Investor-related services 

But private fund custody services can extend even further to areas relating closely to the investor base of an alternative fund. These investor-related services can end up making a huge difference in managers’ operational efficiency. One such area is online reporting, via an investor portal that allows investors self-service access to account information.

Another investor-related area—one which we’ve seen significant interest—is help completing alternative investment subscription documents on a manager’s behalf. This can include completing the core offering documents as well as AML and know-your-customer (KYC) requirements for each investor.

Financing arrangements and more

Although prime brokers are more associated with financing than custodians, managers should know the role private fund custodians can play in supporting their financing strategy. At UMB, for example, we work strategically with both our customers and their existing lenders to create tri-party collateral agreements.

Bank custodians like UMB may also be able to support alternative managers even further throughout the investment lifecycle with traditional banking and escrow services, investor servicing and fund administration.

Ultimately, our work as custodian is to keep all parties secure and provide the client service that helps managers run their businesses as efficiently as possible.

UMB’s is among the nation’s leading institutional custodians. Our team offers a complete range of domestic and global custody services with a high-touch service model. Visit umb.com to learn how we  can support your firm’s institutional custody needs, or contact us to be connected with a custody team member.

 

UMB: Five key banking-as-a-service terms you should know

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UMB: Five key banking-as-a-service terms you should know

July 11, 2022 | David Robinson | UMB

Although Banking-as-a-Service (BaaS) is new, banks have been making their services available behind the scenes for decades. What’s changed in recent years is the explosion of fintech firms seeking to partner with banks to access the payment rails historically limited to regulated financial institutions.

A greater number of participants has led to the need for more standardized language about BaaS.

In the past, it was easy enough for a bank to communicate with a brokerage firm about setting up deposit accounts for its customers so they could benefit from FDIC insurance coverage. Any questions about how that worked, and who was responsible for what, would naturally get worked out as a matter of course.

Now, by contrast, multiple fintechs may be talking with multiple banks about multiple services…and all using slightly different terminology. That can slow down the solution-building process, especially when the solution involves several entities.

Besides speed to market, there’s another reason for banks and their clients to establish and use clear terminology: risk management. Getting payments right within the guardrails of the regulatory environment is essential. Connected parties may jointly touch many thousands of transactions on a daily basis. To effectively communicate about varied roles and responsibilities particularly related to risk and regulation, it’s imperative to have communication clarity.

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UMB: What does a custodian do for alternative investment managers?

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UMB: What does a custodian do for alternative investment managers?

June 29, 2022 | Amy Small | UMB

Legacy mutual fund managers are likely accustomed to hearing about custody requirements driven by regulation. But what does a custodian do for alternative asset managers who are not experienced in hiring a qualified custodian?

The primary duty of a third-party custodian is loss prevention by safeguarding assets. All registered funds, even those with alternative strategies, are required by law to use a custodian, who “sit between” the investment manager and the assets themselves, for everyone’s protection.

Many unregistered alternative funds—such as hedge funds and limited partnerships—also use a custodian, often at the request of one or more large investors who want the strong controls provided by third-party oversight such as compliance with anti-money laundering (AML) requirements. Or, because the ancillary services provided by a custodian support efficiency in their cash management and investor onboarding efforts.

The word “custodian” can be a bit confusing, especially in the context of alternative asset classes. The role I’m addressing here is different from the services a manager’s prime broker may provide. Private fund custody, in this case, refers to third-party oversight and processing services sometimes known as “bank custody” or “institutional custody.”

That said, like prime brokers, private fund custodians can provide a suite of services that complement the primary function. For prime brokers, sales and trading is the primary function, complemented by ancillary services such as financing.

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UMB Bank: Lifecycle Support for Alts Product Sponsors

Alts Week 2022, UMB Bank

Watch UMB’s Blue Vault Bowman Alts Week 2022 presentation, featuring Jason Fry (Senior Vice President, National Director of Business Development), Mike Huisman (Senior Vice President, Director of Transfer Agency), and Amy Small (Executive Director, Institutional Custody).

 

Alternative Investment Sponsors may be contributing members of Blue Vault, which could create potential conflicts of interest.  Blue Vault subscribers and followers should consider this in their review and analysis.  Information is intended only for institutional, broker dealer or registered investment adviser use.  This information is prohibited for use by the general public.

What does investor servicing and transfer agency cost for a non-traded REIT or BDC?

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What does investor servicing and transfer agency cost for a non-traded REIT or BDC?

May 31, 2022 | Mike Huisman | UMB

In my role leading UMB’s transfer agency, alternatives sponsors call me and say, “Here’s an NDA; let’s talk pricing for this non-traded REIT (NTR) or business development company (BDC) we’re bringing out.” One reason servicing cost is on their mind is they recognize product sizes are different from years ago.

Most new NTRs and BDCs today are far smaller than they were 10 years ago. It used to be common for products to launch with 50,000 investors—and sometimes many more. Many sponsors are aware that the transfer agency business model for investor servicing is built around volume. They understand the economies of scale aren’t the same for a product with 50,000 investors and one with just 10 investors, and they aren’t sure what to expect when it comes to transfer agency costs for their BDC or NTR.

Look to bundle smaller products

Small investor numbers are especially common in the real estate space. Private-placement 1031 exchange products are a good example. Tax rules require that the investors in these products—who have just sold real estate and want to reinvest the proceeds—need to do so within 45 days of their sale.

Sponsors work hard to gather together groups of people in similar situations, including similar timelines. But that’s necessarily going to be a small group of people. For the sponsor, the business focus is to launch one product and move quickly onto the next. The next one may be very similar, but legally it’s a different instrument, with a different investor base.

Let’s take a hypothetical manager who has called me to talk about a real estate product. The trend these days is toward smaller products – products already in existence or planned or both – and are likely part of a larger strategic plan.

That strategic plan is important when I talk with the manager about pricing, since the cost of transfer agency services depends on volume.

That’s where bundling comes in. We are sometimes able to apply a stairstep-type pricing structure, in which the sponsor pays $X per investor in the initial product but then a lesser amount of $Y per investor as the volume grows in related products. There may also be a lower $Z level as well.

That structure can be a mutual fit, as closing multiple similar products is fundamental to the manager’s business model. And on our side, the structure brings some sensitivity to how supporting a whole system of investor services—call centers, transaction processing, commission payments, investor notifications and more—depends on achieving economies of scale.

Maximum efficiency is the new baseline

Sponsors may recall historical transfer agency pricing in which discounts were available when higher-efficiency practices were employed. For example, servicing contracts may have been designed to provide discounts when higher-efficiency practices were employed by a sponsor, such as digital account onboarding.

Today, pricing anticipates that all parties will adopt processes to maximize efficiencies. And, if not, more manual processes could be introduced at an extra fee.

Digital onboarding, which benefits both sponsors and the transfer agency, must be a standard operating procedure. The good news is that using digital systems has gotten easier, thanks to a variety of new platforms on the market and, on the sponsor side, an investor base that is much more comfortable and familiar with digital account-opening processes.

Other technology that benefits economies of scale—and therefore a transaction processor’s ability to price competitively—includes optical character recognition (OCR) and robotic process automation (RPA). Service providers are makingsignificant investments in both these areas to speed up onboarding, freeing service teams to focus on reviewing exceptions rather than data entry and manual processing.

Digitalization means progress for both transfer agent and sponsor

The bottom line is, as in so many other areas of business, digitalization is making a huge difference. It’s making it possible for us to price transfer agency services for NTRs and BDCs in innovative ways, because everyone is on board with maximizing efficiency. So, while the per-investor pricing for a small product is necessarily higher than with a large product, you don’t have to worry so much about sticker shock.

Learn more about UMB Fund Services and how we can support your firm’s registered and alternative investment fund servicing needs, or contact us to be connected with a fund services team member.

Three Industry Veterans Bring Expertise to UMB

AltsTech, AltsTech Announcements, UMB Bank

Three Industry Veterans Bring Expertise to UMB  

February 16, 2022 | UMB

UMB’s Fund Services and Institutional Custody teams are growing with the hiring of three industry veterans. Paul Troilo joins Fund Services as global relationship manager, and Tonya Cordray and Melissa Clingan join Institutional Custody as senior manager and manager custody administration, respectively. 

Paul Troilo has more than 27 years of mutual fund accounting, custody and project management experience. In his role, Troilo is responsible for overseeing registered fund client relationships and ensuring exceptional client service is delivered. Prior to joining UMB, Troilo served as vice president at State Street Bank & Trust Company where he built and managed a client service team, developed new business and specialized in conversions, deconversions, mergers and all associated fund event activities. He earned a bachelor’s degree in accounting with a minor in finance from the University of Massachusetts in Boston. 

“Paul brings decades of valuable industry knowledge to our team,” said Scott Schulenburg, SVP/Director of Client Services. “As we continue to grow our client base, it was imperative to hire an industry expert to ensure that our clients continue to receive the highest level of service that UMB is known for.” 

Tonya Cordray brings more than 20 years of institutional custody knowledge and 25 years of financial services industry knowledge and management experience. As senior manager within the Institutional Custody Administration team, Cordray oversees all clients, as well as the team members servicing clients, to ensure that each is met with exceptional service levels. Prior to her role at UMB, Cordray held positions at Waddell & Reed, State Street Bank & Trust Company and Benefit Trust Company. During her time at State Street, Cordray managed operations, client service and relationship management teams. She earned a bachelor’s degree in finance and management accounting from Park University in Parkville, Missouri and a master’s degree in business administration from Webster University in Webster Groves, Missouri. 

Melissa Clingan has more than 18 years of experience of institutional custody experience. At UMB she is responsible for leadership and development of the custody administration team with a focus on insurance and government entities. Prior to joining UMB, Clingan served as assistant vice president at State Street Bank & Trust Company and was instrumental in the management of complex and varied banking services for domestic, international and emerging market funds. Clingan also led a team for onboarding new funds while facilitating conversions, mergers and systems setups. She earned a bachelor of art degree in business administration and management from Park University in Parkville, Missouri. 

“We’re thrilled to bring such talented individuals to UMB to join our growing team,” Amy Small, SVP, Director of Institutional Custody at UMB Bank. “I’m confident that Tonya and Melissa’s experience will be a valuable asset for both our clients and team members.” 

About UMB: 

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB Bank, N.A. offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, and serves business and institutional clients nationwide. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank. For information about UMB’s operations, approach and relief measures during the COVID-19 pandemic, please visit umb.com/COVID-19. 

 

Farnam Street Real Estate Capital Selects UMB Fund Services to Administer New Private Fund

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Farnam Street Real Estate Capital Selects UMB Fund Services to Administer New Private Fund

January 13, 2022 | UMB Fund Services

UMB Fund Services (UMBFS), a subsidiary of UMB Financial Corporation (Nasdaq: UMBF), is pleased to announce that it has been selected to provide fund accounting, investor servicing and tax reporting for Farnam Street Real Estate Capital (FSREC). FSREC is a full-service commercial real estate investment firm. FSREC launched its first closed-end fund, Farnam Street Real Estate Capital Partners I, LP, on May 7, 2021.

“We are pleased to support Farnam Street Real Estate Capital with a suite of services for their innovative private fund,” said Jill Calton, executive vice president and director of alternative investments at UMB Fund Services. “We’re excited to work with a fund that promotes and envisions growth and investment in the communities throughout much of UMB Bank’s footprint.”

Founded in Omaha in 1981, The Lund Company—which joined the Cushman & Wakefield Alliance in 2012—serves as a strategic partner for FSREC and provides property management and real estate services.

FSREC is co-sponsored by Dwayne Sieck and Jason Fisher. Sieck is the co-founder, president and CEO of Farnam Street Real Estate Capital. He previously was president and chief operating officer of Mutual of Omaha Bank. Sieck is also currently serving his second three-year term on the Kansas City Federal Reserve Bank Board as a director of the Omaha Federal Reserve Bank branch.

Fisher is the co-founder of Farnam Street Real Estate Capital. He has also served as president of Cushman & Wakefield/The Lund Company since 2010 and has played a critical role in many of Omaha’s significant real estate projects.

In addition to utilizing UMB Fund Services for fund administration, UMB Bank has worked closely with Farnam Street Real Estate Capital on various Treasury, Depository and Institutional Trust Services.

“The newly formed administration relationship between UMB Fund Services and Farnam Street Real Estate Capital showcases the depth and breadth of services that UMB Financial Corporation offers to clients in Omaha and across the bank’s footprint,” said Joel Falk, president of Nebraska at UMB Bank. “Through serving as a valued banking partner in the region, we continue to build our strong relationship with Farnam Street Real Estate Capital as they expand their relationship with UMB by utilizing our institution’s award-winning fund servicing business.”

About Farnam Street Real Estate Capital:

Farnam Street Real Estate Capital (“FSREC”) is a full-service commercial real estate investment firm located in Omaha, Nebraska. FSREC is focused on optimizing returns for their investors with a mix of core, value add, and development investments that create a balanced approach to dividend income and capital appreciation.

For more information, please contact them at 402-393-8811 or visit www.farnamstreetrecap.com.

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, and serves business and institutional clients nationwide. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank. For information about UMB’s operations, approach and relief measures during the COVID-19 pandemic, please visit more.umb.com/coronavirus/.

Media Contact

Kaele Palmer
Phone: 202.276.2471
Email: kaele.palmer@umb.com

 

 

Unlisted Closed-End Funds: Growth Persists Despite Pandemic

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Unlisted Closed-End Funds: Growth Persists Despite Pandemic

November 23, 2021 | UMB Fund Services

The unlisted closed-end fund structure—primarily interval funds and tender-offer funds—allows asset managers to access the mass affluent market while addressing the liquidity challenges of alternatives and illiquid securities. Nearly 80 products have been launched during the last four years and another 47 sit in registration. UMB partnered with FUSE Research Network to publish a market update as of the second quarter of 2021, with insights into top investment categories, strategies, pricing and top asset managers.

The future of the unlisted closed-end fund space continues to look bright, with strong asset growth expected. Since 2017, annual growth has been in the double-digits. Asset growth in the first half of 2021 outpaced that of active exchange traded funds (ETFs) and mutual funds. As of June 2021, 138 unlisted closed-end funds were available for purchase by investors regardless of accreditation status, with total assets under management (AUM) reaching nearly $85 billion.

The data covered in UMB’s report includes interval funds and tender-offer funds, which are continuously offered registered closed-end funds that provide periodic liquidity to investors. They are primarily differentiated by the structure of repurchase offers. These structures allow asset managers to package complex strategies and access low liquidity asset classes, which cannot be handled by traditional packages.

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Alternative Investment Exchange (AIX) Announces Integration with UMB Fund Services’ Systems

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Alternative Investment Exchange (AIX) Announces Integration with UMB Fund Services’ Systems

November 30, 2021 | Alternative Investment Exchange (AIX)

Alternative Investment Exchange (AIX), an alternative investment technology firm that makes it easier for wealth managers and fund sponsors to do business in alternatives, announced the development of a direct data connection with UMB Fund Services (UMB), a national leader in registered and alternative investment fund administration. The direct data connection was developed with UMB that enables AIX to digitally transmit subscriptions and new accounts without costly manual intervention and reliance on paper-based processes.

“Alternative investments have always required a high degree of manual intervention. Paper documents, wet signatures, and PDF documents that must be re-keyed made it especially challenging to automate processes such as opening accounts and onboarding new customers,” explained AIX’s COO, Brad West. “With true digital, straight-through processing, AIX can move data seamlessly to UMB, minimizing NIGOs, reducing its administrative headaches, and eliminating unnecessary back-office costs.”

During the height of the pandemic and despite quarantine orders, many paper-reliant fund administrators were forced to keep offices open so that redemption requests could be processed, and compliance requirements were met. This underscored the inefficiencies of paper, and the liability risk for having business processes tied to such antiquated practices.

“UMB is committed to adopting the latest technology to enhance customer experience and support our growth,” explained Mike Huisman, SVP, Director of Transfer Agency at UMB Fund Services. “The pandemic accelerated our path in leveraging technology to automate our business, create efficiencies, and address risk and liability issues tied to paper and manual processes. Our vision, which has been realized by integrating with AIX, was to automate the subscription, maintenance, transfer, and redemption processes of alternative investments.”

Unlike other tools that only mimic a paper process by enabling e-signature and sending PDFs, AIX enables data flow across and into backend systems. The standard is data, seamlessly flowing across all parties, creating efficiency and transparency, all while reducing risk.

“Committing to this standard delivers an entirely different level of impact and experience. Automating backend manual processes through data connectivity removes friction felt by all involved, but is only fully appreciated by those that must otherwise manually stitch steps together,” explained West. “Partnering with UMB to create authentic data connections truly changes the game. We are experiencing low NIGO rates and enhanced compliance while advisors tell us they do not want to do business any other way. Everyone wins.”

About AIX:

Alternative Investment Exchange (AIX) is an end-to-end digital platform purpose-built to improve the processes related to buying, owning, and selling alternative investments. AIX’s technology reduces friction, mitigates risk, and creates value across all alternative investing stakeholder groups – wealth managers, asset managers, custodians, transfer agents, and fund administrators. By evolving beyond documents to make data the connective tissue between alternative investment players, AIX makes it easier to conduct business and accelerate industry growth. For more information, please visit aixplatform.com or LinkedIn: linkedin.com/company/aix-alternative-investment-exchange.

Media Contact:

Mark Tordik Broadpath (for AIX)
mtordik@broadpathpr.com
(215) 644-6503

UMB issues industry report on U.S. private debt market

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UMB issues industry report on U.S. private debt market

November 30, 2021 | UMB Fund Services

The private debt market has come into its own over the past decade. Once a small and obscure asset class, the market’s meteoric rise has benefited from a low interest rate environment, institutional capital backing and heightened EBITDA valuations across multiple sectors.

Now that the private debt passed its first significant test—having performed better than many observers’ expectations during the pandemic—the question is how much bigger the asset class can get. To explore that question, UMB Fund Services partnered with PitchBook to produce an industry brief.

This report aims to highlight the private debt market through multiple lenses, including fundraising, fund sizes, fund types, and geographical distribution. It also includes a spotlight on venture debt, which became a valuable tool for startups during the pandemic.

Key observations from the industry brief

• The private debt market proved resilient from a credit perspective during the COVID-19 crisis.

• In terms of deal activity, the private debt market had a strong 2020, all things considered. More than $264 billion was borrowed last year, the third-highest mark on record, via 3,455 transactions.

• Institutional investors are making a big push into the asset class. $85.1 billion was raised by private lenders last year, in line with the recent past.

• All told, private debt lenders are in a good position post-COVID. Traditional lenders such as banks have soured on the market, having arguably overcorrected in the early innings of the pandemic as they contracted their lending requirements. Private lenders have proven more flexible, particularly for sponsored deals, and stand to benefit from a strong recovery in the PE market.

• As a result of COVID-19, there has been a pronounced uptick in credit special situations funds. Through H1 2021, credit special situations funds pulled in 22% of all private debt fundraising, easily the highest percentage the strategy has ever seen.

• Venture debt, an often-maligned asset class, had a record year in 2020 and earned a renewed appreciation for the value it provides to the venture ecosystem.

• The capital of the U.S. private debt industry is New York. Since 2012, the mid-Atlantic region has accumulated about half of all private debt fundraising in any given year. In 2020, for example, more than $51 billion was raised in firms headquartered there, or 61% of all U.S. fundraising. The West Coast was a distant second at $12.3 billion.

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Dynamic Balance Sheet Modeling for Business Planning

Alternative Angle, AltsTech, AltsTech News, UMB Bank

Dynamic Balance Sheet Modeling for Business Planning

September 21, 2021 | Jordan Taylor | UMB

The pandemic has caused an abundance of uncertain times. It’s becoming repetitive to talk about, but it’s of major importance for the banking industry. At one point, it looked like things were getting back normal, but then a new variant of the virus has created some confusion for the future.

For the upcoming budgeting season, we thought it would be beneficial to discuss some dynamic options for balance sheet models that we can run for banks. These models provide an idea of what rate sensitivity analysis could look like if banks wanted to compare different scenarios with different balance sheet totals.

Before we dive in, let’s see a quick market update from second quarter 2021 to now. There really hasn’t been too much change regarding interest rates, as you can see from the charts below. The effective fed funds target rate remained relatively unchanged between .08% and .10% (according to the St. Louis Federal Reserve website) while U.S. Treasury rates declined slightly.

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Three key considerations for a successful turnaround

Alternative Investment Industry, AltsTech, AltsTech News, UMB Bank

Three key considerations for a successful turnaround

August 6, 2021 | Ginny Housum

Ginny Housum, senior vice president and workout specialist at UMB Bank, was recently recognized by the Turnaround Management Association (TMA) Minnesota for her work as trustee on a successful turnaround that included the stabilization and asset sale of a 90-unit senior care facility in Minnesota, which positioned the facility for long-term financial resiliency, and providing the town where the facility is located with a stable employer providing high quality of care to its vulnerable population.

With more than 25 years of experience and with a focus on municipal bond project financings, including continuing care retirement communities (CCRCs) and other senior housing issues, Ginny has accumulated a wealth of knowledge on how to support distressed debt and a successful turnaround. Below, she shares three key considerations when executing a successful turnaround.

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UMB Fund Services Launches Automated OCR Subscription and Tender Processing for Registered Closed-End Funds

AltsTech, AltsTech Announcements, News, UMB Bank

UMB Fund Services Launches Automated OCR Subscription and Tender Processing for Registered Closed-End Funds

October 11, 2021 | UMB Fund Services

UMB Fund Services (UMBFS), a subsidiary of UMB Financial Corporation (Nasdaq: UMBF), today announces the launch of its automated optical character recognition (OCR) processing program. The technology enables faster, more accurate processing of handwritten subscription and tender documents by replacing manual reviews with OCR software and bot technology, turning what previously amounted to hundreds of hours of manual processing into a 24-hour automated service.

The program creates a standard process for all client documents, whether received in paper, email, fax or data files, allowing UMBFS to handle high volume, short period spikes for tenders or product closings—a critical solution that has historically been a challenge for service providers.

“The launch of our OCR processing program is the latest commitment by UMB Fund Services to invest in technology that enhances our client service,” said Mike Huisman, senior vice president, director of transfer agency, UMB Fund Services. “OCR processing supports UMB Fund Services’ sustained growth and further sets us ahead of other processors in the registered closed-end space.”

OCR processing is currently being implemented for every existing UMBFS client and is available to all new clients as part of the onboarding process.

This announcement follows UMBFS’ recent selection by Alternative Fund Advisors to provide transfer agency, fund accounting, tax reporting and fund administration on its AFA Multi-Manager Credit Fund. UMBFS has also recently been named administrator for Hamilton Lane’s registered and private funds, as well as Bow River’s Evergreen Fund following its conversion from a private equity to a registered closed-end interval fund.

UMBFS was named Best Interval Fund Administrator in the 2021 Fund Intelligence Operations and Services Awards. In 2020, the Mutual Fund Service Guide ranked UMBFS as the top transfer agency for U.S. registered closed-end funds based on the number of accounts serviced. Private Equity Wire also recognized UMBFS in 2020 as Best Fund Administrator–Technology.

UMB Fund Services is a subsidiary of UMB Financial Corporation, offering a complete line of products and services to the fund industry, including fund administration, fund accounting, tax, investor services and transfer agency, distribution* and custody*.

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, and serves business and institutional clients nationwide. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank. For information about UMB’s operations, approach and relief measures during the COVID-19 pandemic, please visit more.umb.com/coronavirus/.

*Services provided by UMB Distribution Services, LLC and UMB Bank, n.a.

An Option for Streamlined Settlement of Private Placement Bonds

AltsTech, AltsTech News, UMB Bank

An Option for Streamlined Settlement of Private Placement Bonds

September 1, 2021 | Tim Cook

In conjunction with capital raises for a fund, sponsors may also issue bonds to the investors. In this situation, sponsors need a trustee and/or paying agent and an approach for settling the private placement bonds themselves.

We may already be serving as Escrow Agent for the offering, and sponsors may seek additional services from us since we are already familiar with the offering. Sponsors are often surprised and pleased to learn about a streamlined option for settling the securities transaction.

Specifically, it’s possible in many cases for us to place the newly issued securities directly on the Depository Trust Company (DTC) platform and settle the transaction when the sponsor is ready to actually issue the bonds. Placing the securities on the DTC Platform provides an easy way for bondholders to trade and transfer their securities.

How it works 

Our upfront role as Settlement Agent includes obtaining CUSIP numbers, if needed, setting up securities on the DTC platform, completing and submitting to DTC a securities eligibility questionnaire, and coordinating delivery of required documents.

Then, on the closing day, the purchaser typically wires funds to the issuer and instructs its DTC Participant to post a one-sided DWAC Deposit using DTC’s Deposit / Withdrawal platform.

• Once the issuer confirms receipt of funds, the Settlement Agent coordinates with the issuer’s  transfer agent (typically UMB) to confirm the DWAC transaction.

• At that time, the purchaser’s custodial agent will receive the book-entry security versus the previous cash outlay.

In some cases, an even more streamlined approach may be appropriate, in which no wire transfers are necessary.

• In this scenario, the Settlement Agent takes delivery of the securities into the issuer’s UMB account and then re-delivers them to the DTC trading “window” of the investor’s custodial agent via its standard delivery instructions for book-entry securities.

• The investor’s custodial agent is on notice to anticipate the securities delivery for immediate same-day payment, which are then transferred by way of DTC book entries—eliminating the need for a cash wire transfer.

Regardless of the specific settlement details, the Settlement Agent works with DTC and the issuer to complete the delivery of the securities.

Potential benefits to issuers

The primary benefits are cost and time savings versus other approaches to establishing book-entry securities with DTC.

We are often able to further amplify those savings because of our familiarity with an offering due to serving as Escrow Agent and potential additional roles as Trustee, Paying Agent and/or Collateral Agent for the underlying securities going forward.

UMB is a nationally recognized and ranked provider of bond trustee and agency services to the corporate and municipal marketplaces. Learn how UMB can support your organization’s trust and escrow needs, or contact us to be connected with a corporate trust team member.

 

A growing asset class: The US private debt market

AltsTech, AltsTech Announcements, AltsTech Companies, UMB Bank

A growing asset class: The US private debt market

August 2021 | UMB 

The private debt market has come into its own over the past decade. Once a small and obscure asset class, its profile was raised in the aftermath of the 2008 global financial crisis. Traditional lenders shied away from financing smaller, private market transactions, leaving a large gap in funding for the private equity market, especially in the middle market and below. Private debt firms filled the void. According to PitchBook, only 1,530 private debt transactions were made in 2010, a number that would rise to almost 5,000 transactions by 2018. Likewise, the value of those 2010 deals amounted to only $70.3 billion. Six years later, the aggregate value of private debt transactions ballooned to $316.5 billion, a more than fourfold increase.

This report, made in conjunction with PitchBook Data, aims to highlight the private debt market through multiple lenses, including fundraising, fund sizes, fund types, and geographical distribution. It also includes a spotlight on venture debt, which became a valuable tool for startups during the pandemic.

Access UMB Report

Alternative Fund Advisors Selects UMB Fund Services to Provide Services to the Firm’s First Registered Closed-End Interval Fund

AltsTech, AltsTech News, UMB Bank

Alternative Fund Advisors Selects UMB Fund Services to Provide Services to the Firm’s First Registered Closed-End Interval Fund

August 12, 2021 | UMB Fund Services, Inc.

MILWAUKEE (Aug. 12, 2021) – UMB Fund Services, Inc. (UMBFS), a subsidiary of UMB Financial Corporation (Nasdaq: UMBF), is pleased to announce that it has been selected to provide services to the AFA Multi-Manager Credit Fund—Alternative Fund Advisors, LLC’s (AFA) first registered closed-end interval fund.

UMBFS will provide transfer agency, fund accounting, tax reporting and fund administration for AFA’s fund, while UMB Bank, n.a. will provide custody services.

“We are pleased to provide a suite of services to support Alternative Fund Advisors‘ first registered closed-end interval fund,” said Maureen Quill, executive vice president, executive director of registered funds at UMBFS. “In addition to accessing our award-winning fund administration and custody services, Alternative Fund Advisors will be able to take full advantage of our high-touch client service as they continue to grow and evolve their product.”

Alternative Fund Advisors, founded in 2020, was launched with the purpose of offering institutional-quality private investment strategies in a convenient interval fund format to RIAs, family offices, and wealth advisors at private banks.

“From the beginning of our partnership, UMB Fund Services has demonstrated their steadfast commitment to client service by helping us through the challenges associated with launching a closed-end interval fund,” said Marco Hanig, managing and founding principal, CEO at AFA. “We are confident that UMB Fund Services is the right partner to have in our corner for the AFA Multi-Manager Credit Fund.”

This announcement follows UMBFS’ recent selection by Hamilton Lane to provide administration, fund accounting and custody services to certain registered and private funds. UMBFS was also recently chosen to provide services to Bow River Capital’s Evergreen Fund, following its conversion from a private equity to a registered closed-end interval fund.

UMBFS was named Best Interval Fund Administrator in the 2021 Fund Intelligence Operations and Services Awards. In 2020, the Mutual Fund Service Guide ranked UMBFS as the top transfer agency for U.S. registered closed-end funds based on the number of accounts serviced. Private Equity Wire also recognized UMBFS in 2020 as Best Fund Administrator–Technology, while UMB Bank was voted as Best Custodian in 2019.

UMBFS is a subsidiary of UMB Financial Corporation, offering a complete line of products and services to the fund industry, including administration, fund accounting, tax, investor services and transfer agency, distribution* and custody*.

About Alternative Fund Advisors

Alternative Fund Advisors, LLC (“AFA”), established in 2020 by Marco Hanig and Mike Jancosek, is the investment manager of the AFA Funds, a family of interval funds that enables individual investors to access private assets with greater convenience than traditional limited partnerships. AFA’s funds invest in unique private asset strategies managed by top-tier institutional specialty managers around the globe. To learn more, please visit alternativefundadvisors.com.

About UMB

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, and serves business and institutional clients nationwide. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank. For information about UMB’s operations, approach and relief measures during the COVID-19 pandemic, please visit more.umb.com/coronavirus/.

 

*Services provided by UMB Distribution Services, LLC and UMB Bank, n.a.

Fraud Risks for Alternative Fund Sponsors and How to Reduce Your Exposure

AltsTech News, UMB Bank

Fraud Risks for Alternative Fund Sponsors and How to Reduce Your Exposure

June 14, 2021 | James Sprow | Blue Vault 

The following is derived from the June 9, 2021 Blue Vault Webinar featuring:

• Amy Small – SVP, Director of Institutional Custody, UMB Bank

• Anthony Rogers – SVP, Director of Fraud Operations, UMB Bank

• Chelsea Cook – VP, Enterprise Fraud Program Specialist, UMB Bank

Introduction

Fraud is an intentional or deliberate act to deprive another of property or money by deception. UMB’s main goal:  Protect the assets of our customers at the bank. (Fraud prevention is not viewed solely as a compliance exercise.)

Click here to watch this webinar on-demand!

Four Pillars of Fraud Prevention Program

• Fraud Prevention – activities and controls designed to limit the ability of fraud to occur in the first place

• Fraud Detection- dedicated monitoring efforts, identifying suspicious and anomalous behavior

• Fraud Response – once a fraud event has occurred, response focuses on what happens next (investigation, root causes, etc.)

• Fraud Recovery – action engaged to locate and recover stolen funds on behalf of the customer and/or the bank if possible

Education and training – fraud awareness programs provide a strong fraud prevention lift by engaging employees and customers in recognizing and reducing fraud risk.

Types of Fraud Risks

Identity Theft

ID Fraud has two main forms:

    • Fraudulent Applications – This involves attempts to use fraudulent identity information to obtain a new account

    • Account Takeover – This involves attempts to fraudulently gain access to existing accounts

Mitigation

• Data – Comparing info on application to various valid data sources

• Risk models – use of tools that score transaction or application, also score risky devices

• ‘Negative lists’ – Credit bureau or other industry alerts of known fraud

• Multi-factor authentication – at least two of the following:

› Something you know (knowledge factor) – password

› Something you have (possession factor) – phone or key fob

› Something you are (inherence factor) – voice or fingerprint

Card Fraud

• Counterfeit – fake cards with real account information stolen from victims

• Lost / Stolen – criminals know the clock is ticking until lost/stolen card is reported missing

• Non-Receipt – interception of a card before victim even has possession

• Card Not Present – criminals steal basic card information and use it to buy goods and services at e-commerce, phone and mail-order merchants

• Fraud Prevention Tips:

› Online banking tools to monitor account

› Text alerts

› Review statements

› Notify bank asap of card fraud or stolen/lost card

› Safe storage and use of cards

› Addressing Card Fraud – Strategy Development

              • Fraud strategy development is a fluid process with a general process:

› Identify fraud trends through reporting, fraud claims, overall analysis

› Analysis performed on the identified trends

› Mitigation strategies developed and tested

› Monitor effectiveness

› Make adjustments

Check Fraud

• In 2018, check fraud accounted for 47% or $1.3 billion of industry deposit account fraud losses

• Counterfeits, forgeries, and check alterations remain the most common check fraud types

• Scam deposit fraud also remains popular year over year

• Fraud Prevention Tips:

› Online banking tools to monitor account, text alerts

› Review statements

› Notify bank asap

› Positive Pay

› Paper Draft Block

› Dual control for reconciling

› Awareness on phishing and social engineering

Wire Fraud

• Wire fraud is the use of international wire networks to perpetrate fraud

• Sending a wire is like sending cash – there is no way to recall a wire once it has been sent, and chances of recovery are very low

• According to the SWIFT wire network, banks using SWIFT sent over 35 million transactions per day in 2020

ACH Fraud

• ACH Fraud is the use of Automated Clearing House network to perpetrate fraud

• All that is needed is the ABA routing number and an account number

• According to NACHA over $23 billion in ACH payments were made in 2018

• 24 hour window to return a business ACH/60 days for a personal account

• Fraud Prevention Tips:

› Use online banking tools to monitor an account

› Review statements

› ACH filters

› Awareness on phishing and social engineering

What is Social Engineering?

Social engineering is an in-person or online attack used to trick individuals into breaking normal security measures or routines.

It is our nature to trust and want to help. Cybercriminals use psychology and human nature to try to get you to bypass important security controls.

The attacker will attempt to:

• Deceive by presenting themselves as someone that can and should be trusted

• Communicate in person or through an online private message that appears harmless or even useful

• Prey on your emotions to encourage you to help them get through security protocols

What is Phishing?

Phishing scams are the most common types of social engineering attacks

These scams direct you to a fake website or install malware to allow cybercriminals to steal and use your credentials.  Once they have any authority you do, they can set up fraudulent wire transfers to steal customer funds or move secure files outside the controlled network.

They seek to obtain confidential information:

• System credentials

• Account information

• Social Security Numbers (SSN)

They use:

• Shortened URLs

• Sites that appear legitimate

They attempt to:

• URL link redirect you to a page to try to harvest your credentials

• Ask you to break routine and transfer funds outside normal protocol

• Introduce an executable malware file (.exe) through an email attachment that will do damage deceptively behind your workstation

Best Practices to Detect Phishing

•  Always look at the sender’s email address.  Think it’s from someone you know? An added letter or number in the address is a sign that it could be a compromised email account

•  Hover over the link with your mouse.  This will help make sure it is a valid link with destination name in the address.

• Never reply to an email unless you know for certain it’s valid.  Don’t try to find a reason to validate why someone is emailing you – it’s ok to be suspicious!

• Is the email general and not personalized?  Does it contain words like “Hello” instead of your name?  Watch for tone, poor spelling, and generic sign offs like “Regards” or “Thanks” with no name

What is Business Email Compromise?

A business email compromise (BEC) is a phishing scam that targets businesses and financial institutions to commit wire fraud.

How does it happen?

• A fraudster identifies himself as a high-level executive (CFO, CEO, CTO, etc.), lawyer, vendor, customer, or other type of representative

• He or she claims to be handling confidential or time-sensitive matters and initiate an urgent wire transfer to an account that they control

• If you don’t follow normal security controls to confirm the request using customer data on file funds lost through BEC can be permanently lost, leading to a loss of business, reputational damage, corrective action, etc.

Per the FBI, BEC is now the biggest cause of cybercrime financial losses for US organizations: $1.7 billion in reported losses in 2019

BEC is the fraud sweet spot – social engineering mixed with phishing that results in a big payoff

• Payment instruction changes

• Urgent wire requests

• Urgent requests from senior leaders or CEOs

Fraud Mitigation Tools / Solutions

•  Risk based & proactive monitoring – anticipating trends, early detection on emerging trends

• Pattern recognition – neural networks and machine learning (How does the fraudster’s behavior differ from legit transactions?)

• ‘Time is Money’ – fraud needs to be stopped in relevant time

• Industry solutions – many vendors & associations, from sophisticated AI machines to “snake oil”

• Collaboration among banks and other parties – consortium data, forums & conferences

• Law enforcement engagement

• Investment in technology, people and training

 

Click here to watch this webinar on-demand!

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, and serves business and institutional clients nationwide. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank. For information about UMB’s operations, approach and relief measures during the COVID-19 pandemic, please visit https://more.umb.com/covid-info/.

Hamilton Lane Selects UMB Fund Services as Administrator of Firm’s First U.S. Registered Closed-End Fund

AltsTech, AltsTech Announcements, AltsTech Companies, AltsTech News, UMB Bank

Hamilton Lane Selects UMB Fund Services as Administrator of Firm’s First U.S. Registered Closed-End Fund

February 9, 2021

MILWAUKEE (Feb. 9, 2021) – UMB Fund Services, Inc. (UMBFS), a subsidiary of UMB Financial Corporation (Nasdaq: UMBF), is pleased to announce that it has been retained to provide fund administration, accounting, transfer agency, distribution* and custody* services for the Hamilton Lane Private Assets Fund (PAF), which merged from a private to registered product to become the firm’s first U.S. evergreen fund.

“We are pleased to continue providing services to Hamilton Lane following the conversion of the firm’s private fund into a registered product,” said Maureen Quill, executive vice president, executive director of registered funds at UMB Fund Services. “We look forward to supporting the growth of Hamilton Lane’s Private Assets Fund with our expertise as the firm markets the fund to qualified clients.”

Hamilton Lane (NASDAQ: HLNE), founded in Philadelphia in 1991, is a private markets investment management firm providing innovative solutions to sophisticated investors around the world. The PAF broadens accessibility to qualified U.S. investors. Compared to traditional private market offerings, the fund features a lower minimum investment of $50,000 and simple 1099 tax reporting; targets fee-efficient investments; and provides the potential for attractive risk-adjusted returns and limited administrative burden.

“We are pleased to have UMB Fund Services as a key service provider for PAF,” said Fred Shaw, Chief Risk Officer at Hamilton Lane. “UMB Fund Services’ expertise across registered closed-end funds, coupled with their high-touch service, will help us offer the fund to a broader set of U.S. investors seeking access to the private markets.”

UMBFS ranked as the top transfer agency for U.S. registered closed-end funds based on the number of accounts serviced in the 2020 Mutual Fund Service Guide. In 2019, UMBFS was named Best Interval Fund Administrator in the Fund Intelligence Operations and Services Awards.

UMB Fund Services is a subsidiary of UMB Financial Corporation, offering a complete line of products and services to the fund industry, including fund administration, fund accounting, tax, investor services and transfer agency, distribution* and custody*.

About Hamilton Lane:

Hamilton Lane (NASDAQ: HLNE) is a leading alternative investment management firm providing innovative private markets solutions to sophisticated investors around the world. Dedicated to private markets investing for 29 years, the firm currently employs over 400 professionals operating in offices throughout North America, Europe, Asia-Pacific and the Middle East. Hamilton Lane has approximately $657 billion in assets under management and supervision, composed of approximately $76 billion in discretionary assets and approximately $581 billion in advisory assets, as of December 31, 2020.  Hamilton Lane offers a full range of investment products and services that enable clients to participate in the private markets asset class on a global and customized basis. For more information, please visit www.hamiltonlane.com or follow Hamilton Lane on Twitter: @hamilton_lane.

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, and serves business and institutional clients nationwide. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank. For information about UMB’s operations, approach and relief measures during the COVID-19 pandemic, please visit https://more.umb.com/covid-info/.

 

*Services provided by UMB Distribution Services, LLC and UMB Bank, n.a.