NEW YORK–(BUSINESS WIRE)–Dec. 19, 2003–Putnam Lovell NBF Securities Inc., a leading investment bank to the global financial services community, and Derivatives Portfolio Management, LLC (DPM), oneof the world’s largest independent fund administrators specializing in alternative investments including hedge funds, are proud to announce a new strategic partnership to meet the rapidly growingneeds of institutional investors for sophisticated risk transparency and monitoring services.
Putnam Lovell NBF, a subsidiary of National Bank Financial Inc., one of Canada’s largest full-service investment banks, will make a strategic investment of approximately $6.5 million in Derivatives Portfolio Management, provide its expert knowledge of the global traditional and alternative asset management markets, and assist DPM in expanding its client base.
DPM, founded in 1993, provides a broad range of middle- and back-office outsourcing and risk administration solutions for clients including institutional investors, fund managers, and proprietary traders. The Somerset, New Jersey-based firm has approximately $18 billion in assets under administration and was ranked by Global Custodian, a leading industry publication, as the top-rated fund administrator in the $10 billion to $20 billion assets under administration category in the 2003 Hedge Fund Administration Survey.
“DPM impressed us as the firm with the operational, technological, and management excellence to take advantage of the growing demand for outsourced administrative and infrastructure support,” said Donald H. Putnam, Chief Executive Officer of Putnam Lovell NBF and Vice Chairman of National Bank Financial. “The services provided by DPM are crucial to institutional investors’ ability to responsibly invest directly in hedge funds, and in Fund of Funds, by meeting their demands for portfolio transparency.”
Daniel H. Kochav, a New York-based Putnam Lovell NBF Managing Director, is leading the firm’s effort to provide institutional investors with high-quality hedge fund related products and services.
“We’re excited to partner with Putnam Lovell NBF,” said Robert M. Aaron, Chairman and Chief Executive Officer of DPM. “Leveraging DPM’s core capabilities and utilizing Putnam Lovell NBF’s strengths will facilitate our international expansion and our exposure to institutional investors and investment firms as their demands for independent administration and valuation continue to grow.”
“We will be more than merely an investor – our goal is a strategic partnership between two industry-leading companies,” said Kym Anthony, President and Chief Executive Officer of Montreal-based National Bank Financial and Chairman of Putnam Lovell NBF.
In its widely publicized December 2002 report, Institutional or Institutionalized – Are Hedge Funds Crazy?, Putnam Lovell NBF forecast that hedge fund assets would increase to $2 trillion by 2010, spurred by an almost fourfold growth in hedge fund allocations by institutional investors.
DPM has increased its assets under administration by 80% in 2003 and now serves approximately 70 clients and 300 individual funds. DPM has operations in the US, the UK, Cayman Islands, and the Bahamas, with affiliates in Ireland and Bermuda.
About Putnam Lovell NBF
Putnam Lovell NBF Securities Inc. (“Putnam Lovell NBF”) is an investment banking firm focused on the financial services industry. It offers merger and acquisition advice, equity capital markets, fixed income trading, and general corporate finance advisory services. It serves a global client base comprised of diversified financial services firms, institutional asset managers, mutual fund managers, securities brokers, insurers, banks, and financial technology firms. Putnam Lovell NBF was founded in 1987 and operates from offices in Boston, London, Los Angeles, New York, and San Francisco. Putnam Lovell NBF Securities Inc., member NASD/SIPC, is a subsidiary of National Bank Financial Inc. For more information on Putnam Lovell NBF, please visit: www.PutnamLovellNBF.com.
About Derivatives Portfolio Management
DPM provides cost-effective fund administration, back and middle office outsourcing, and integrated risk administration solutions for fund managers, asset allocators, institutional investors, and proprietary traders. The suite of services is designed to solve administrative needs and improve operational efficiency. DPM’s systems, infrastructure, and experience can deliver the most basic administrative reports to complex portfolio calculations, risk analysis, and daily transparency. Headquartered in Somerset, New Jersey, DPM’s assets under administration exceed $18 billion. For more information on DPM, please visit: www.dpmllc.com.
