News & Alerts

What should the banking model look like for VC, PE and hedge fund accounts?

Following the recent turmoil in the banking sector during the last month, the focus for the alternative investment industry has been to ensure that their current banking arrangements are safe and secure. Many managers have been looking to diversify their banking relationships to avoid overreliance on a single institution and focus has increased on the importance of robust risk management and compliance measures to mitigate potential risks and ensure continuity of operations.

About FundBank

As an institutional, regulated institutional banking solutions provider, FundBank Ltd offers banking and custodial solutions to hedge funds, private equity funds, venture capital funds, investment managers and family offices within the alternative investment industry.

FundBank, operating as a regulated trust bank, safeguards client funds by depositing them in cash equivalents or on deposit with Bank of New York Mellon*. Additionally, we provide secure custody and swift trade settlement services to facilitate efficient transactions. Client securities are entrusted to our sub-custodian, State Street Bank and Trust Company**

Our approach to institutional banking

None of our client assets are held on our balance sheet, pledged or rehypothecated, thus reducing all liquidity and duration risk that is of particular concern for the alternative asset management industry. FundBank is subject to rigorous regulatory oversight and is required to comply with a wide range of laws and regulations providing a high level of security and assurance to managers and their investors. Furthermore, FundBank mitigates AML/KYC risk by utilising comprehensive systems and controls developed to exceed the requirements of the global regulatory architecture and industry best practices. The FundBank approach to client acceptance is risk based and employs technologies to minimise risk to both clients and FundBank.

Our Institutional Banking Services

FundBank’s focus is to assist clients within the alternative investment industry, built upon:

FundBank plays a key role in supporting the growth and development of the alternative investment industry and looks forward to serving you.

Contact Us
*The Bank of New York Mellon long term debt is currently rated AA- by Moody’s.
** State Street Bank and Trust Company, more commonly known as State Street Global Services is a subsidiary of State Street Corporation and currently has a long term debt rating of Aa1 by Moody’s.
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