BNY Buys Out HedgeMark

Feb 25 2014 | 11:32am 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

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note