MUFG Investor Services expands coverage for alternative investment firms with new escrow service

The escrow service will offered as a value-add to existing MUFG clients and provide them with end-to-end capabilities.

By Joe Parsons

MUFG Investor Services has launched a new escrow agency service, as it looks to expand its capabilities for alternative investment managers.

Escrow arrangements are commonly used by intermediary firms and private equity firms to provide transactional support in a range of situations, including mergers and acquisitions, capital raising, pension scheme funding and international trade finance.

The new offering will allow MUFG clients to securely hold and distribute their cash by acting as the neutral third-party according to pre-agreed transaction terms.

The service will help mitigate risk on business transactions for alternative investment managers, and is an expansion of the firm’s current banking product suite leveraging many of its existing capabilities.

“This new escrow product, combined with our expertise in banking, FX hedging, financing and trust services, provides a unique end-to-end service helping our partners achieve their strategic objectives,” said John Sergides, CEO, MUFG Investor Services.

Money will be held in the Cayman Islands, and a team from MUFG Investor Services will centrally manage the onboarding and negotiation of terms, in line with their standard escrow and banking agreements.

“We are very excited to be launching our new escrow offering, which will not only provide a value-add service to our existing clients but will also allow us to offer other MUFG Investor Services products and services to new escrow-only clients,” said Dan McNamara, chief srategy officer, MUFG Investor Services.

“The offering will be a key component of the future banking value chain, and our dedicated team will ensure that escrow accounts are set up quickly and efficiently, while maintaining the highest standard of client service across the relationship.”

The new service is the latest enhancement to its suite alternatives investment manager offering in recent months, which have included the launch of an environmental, social and governance (ESG) reporting solution for private equity firms and an expansion of its Limited Partner (LP) platform to European and Asia-based firms.

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