Back Office & Operations

BNY Mellon adds side-pocket accounting service


Hedge fund administration firm BNY Mellon Alternative Investment Services has added new accounting and reporting functionality for side pocket accounts and special-purpose vehicles to its range of services. The enhanced functionality is designed to give hedge fund managers greater flexibility when structuring funds and managing illiquid assets.

The automated service is provided via BNY Mellon’s Praeeo proprietary fund accounting platform and aimed at enabling fund managers easily to segregate illiquid and long-term investments.

Capital and earned income, along with applicable profit-carry forward, can be moved automatically from the side pocket to the main portfolio, according to the firm – giving