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BNY Mellon to fully own HedgeMark
24 February 2014
The bank intends to buy the remaining 65% in the hedge fund managed account provider
BNY Mellon is to acquire the remaining stake in HedgeMark
International, a move that gives it full ownership of the firm
that provides hedge fund managed account and risk analytic
The bank, which has held a 35% stake in the company, has now
signed an agreement to buy the remaining 65%, subject to
regulatory approval. The deal is expected to close in Q2. It is
not known how much BNY Mellon will pay for the 65% stake.
According to BNY Mellon, institutional investors are
increasingly turning to managed accounts to invest in hedge
funds in order to provide more customisation, transparency,
liquidity and control.
"As institutional clients continue their shift into
alternatives, especially hedge funds, this acquisition will
enable us to better meet demands for improved governance, risk
reporting, and transparency," said Samir Pandiri, BNY Mellon
executive vice president and CEO of Asset Servicing.
"We’ll be able to integrate
HedgeMark’s capabilities with our Global Risk
Solutions offerings to set a new industry benchmark on risk and
transparency. It marks the next step in our strategy to provide
sharper insight into hedge fund investments and enterprise risk
across a client’s entire portfolio."
HedgeMark founder and CEO Ken Phillips has announced he will
retire once the buyout is complete. Current president Andrew
Lapkin will replace Phillips. Lapkin will help to supervise the
transition and will report to Pandiri following the completion
of the acquisition.