PFPC today reaffirmed its interest in the burgeoning separately-managed account business with its announcement that it has cut an exclusive deal to market and provide the AdvisorPort managed account platform to managed account sponsors nationwide. Persimmon Research Partners, the owner of AdvisorPort, also announced that it has raised another $5 million of venture capital from investors led by Newhouse Special Situations Fund I, a private equity affiliate of Nationwide Mutual Insurance Company.

This is not the first time that PFPC has partnered with a venture-backed technology startup in order to keep itself close to a segment of the fund business that is undergoing quick technological change. Last Spring it made an equity investment in Emplanet, a venture-backed firm specializing in 401(k) recordkeeping that was founded by a number of Fidelity veterans.

PFPC officials said that the agreement would allow them to add separate accounts and multi-strategy accounts to its array of managed account products and services for asset managers. PFPC's managed account services group will offer the AdvisorPort platform along with its current mutual fund managed account platform, AssetDirections.

"AdvisorPort's multi-product platform when combined with PFPC's industry-leading mutual fund-based program, AssetDirections, represents a best-of-breed offering to the managed account industry. PFPC will now be able to deliver any type of managed account servicing to and through its client firms," said Thomas P. Sholes, senior vice president and managing director responsible for PFPC's managed account services. "We are excited about this market, our offerings and the opportunity this creates for our companies."

"Teaming with PFPC will allow us to continue to grow our asset base while introducing enhanced capabilities and services. It will also advance our reputation as one of the most innovative advisory platform in the marketplace," said Gregory S. Horn, AdvisorPort founder and chief executive officer.

Horn added that the round of financing completes the firm's capitalization plans. "This is a very difficult period to obtain funding, which is a testimonial to the strength of our operating platform and our unparalleled success in the fee-based marketplace," Horn added, "We are equally excited about the operating agreement with PFPC. The added capability to rebalance, process and trade mutual funds seamlessly through PFPC greatly enhances our value proposition."  

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