Banking Solutions for U.S. Domestic Entities

- May 2, 2023

John D Rosanelli
Unites States Advisor to DMS Bank & Trust Ltd.

Supporting the Global Alternative Asset Management Community

Following on from his recent update, “What should the banking model look like for VC, PE and hedge fund accounts, John Rosanelli, United States Advisor to DMS Bank & Trust (DMS Bank) updates us on what he has been seeing following the recent turmoil in the banking sector during the last quarter.

John comments, “While managers are focused on ensuring that their current banking arrangements are safe and secure, there is a continuing trend for managers and administrators seeking solutions to diversify fund banking relationships to avoid overreliance on a single institution. As they do so, I am receiving increasing feedback that both administrators and managers are struggling to find the right banking partner or are finding it difficult to open accounts in an expeditious manner to meet the needs of the fund, its management company, and its investors.”

DMS Bank & Trust Doesn’t Just Understand Your Business, its Business is Your Business

DMS Bank offers banking and custodial solutions exclusively to the alternative investment industry in the United States and globally. DMS Bank works closely with numerous U.S. domestic entities supporting both management companies and their managed funds, providing bank accounts and payment services. These accounts can typically be opened in five to 10 business days from receipt of all required documentation. Additionally, account numbers can be assigned prior to account opening to facilitate drafting legal documentation.

DMS Bank provides an extra layer of comfort to its clients. As a regulated trust bank, DMS Bank holds client money in trust with Bank of New York Mellon* on deposit or in cash equivalent high quality liquid assets**. DMS Bank also offers secure custody and settlement services to allow clients to settle trades quickly and efficiently. Client securities are held on trust with DMS Bank’s sub-custodian, State Street Bank and Trust Company***.

No client funds or assets are held on the balance sheet of DMS Bank, and no assets are pledged or rehypothecated. The Bank’s trust structure reduces the liquidity and duration risk that is of particular concern for the alternative asset management industry.

DMS Bank only provides banking solutions to the alternative investment management industry. The Bank doesn’t just understand your business – its business is your business and plays a key role in supporting the growth and development of the alternative investment industry.

*The Bank of New York Mellon long term debt is currently rated AA- by Moody’s.
** High quality liquid assets such as US Government money market mutual funds, US Treasury Securities, US Treasury repurchase agreements.
*** 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.