BNY Buys Out HedgeMark

Feb 25 2014 | 12:32pm ET

BNY Mellon has acquired hedge-fund managed account platform HedgeMark International, three years after first investing in the firm.

The bank said it had agreed to buy the remaining 65% of HedgeMark it does not already own. The deal is expected to close in the second quarter.

Financial terms of the transaction were not disclosed. HedgeMark founder and CEO Ken Phillips will retire from the firm when the deal closes, to be replaced by Andrew Lapkin, currently the firm's president.

BNY Mellon's Pershing unit took a 35% stake in HedgeMark in 2011—a deal that gave the bank the right to acquire the firm outright over time. Since then, HedgeMark has served as an affiliate of BNY Mellon.

"HedgeMark has collaborated closely with BNY Mellon's investment services business these last three years to deliver client- and market-driven solutions for the alternatives industry," Lapkin said. "We look forward to taking our partnership to the next level in the years ahead."

"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," Samir Pandiri, BNY Mellon's CEO of asset servicing, said. "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."


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of