NYLIM Acquires Alts. ETF Specialist IndexIQ

Dec 4 2014 | 11:02am ET

New York Life Investment Management has acquired IndexIQ, a leader in the liquid alternative exchange-traded fund industry, for an undisclosed amount.

The high-profile acquisition is NYLIM's first foray into the ETF space.

Upon closing of the transaction, IndexIQ will be integrated into NYLIM and marketed through New York Life's MainStay Investments platform. It will add $1.5 billion to MainStay’s $101 billion in assets under management.

“Our entry into the ETF space is a significant leap forward for New York Life Investment Management and offers remarkable opportunities all around,” said Drew Lawton, NYLIM CEO, in a statement. “Retail and institutional investors are increasingly attracted to ETFs because they offer a cost-effective, transparent way to access investment opportunities across asset classes around the globe. IndexIQ has established itself as a true innovator and market leader offering the next generation of liquid alternative ETFs, and we intend to leverage IndexIQ’s capabilities to become the dominant provider of non-traditional ETF solutions to the market...At the same time, IndexIQ provides a robust ETF platform that New York Life can use to consider new and diverse offerings in the future.” 

IndexIQ's 12 offerings span ETFs, mutual funds, separate accounts and model portfolios and include the nearly six-year-old IQ Hedge Multi-Strategy Tracker ETF, which aims to replicate the risk-adjusted return characteristics of hedge funds using strategies that include long/short equity, global macro, market neutral, event-driven, fixed income arbitrage, emerging markets and others.   

“This is a win for IndexIQ, for New York Life, and for investors who need smart solutions to achieve a diverse investment portfolio,” said Adam Patti, CEO and co-founder of IndexIQ. “Pairing our innovative history and experience with New York Life’s commitment, resources, and reach positions us to continue our leadership in the ETF marketplace, accelerate our development of both alternative and smart beta solutions, and together revolutionize the industry.”

The transaction is expected to close in the first half of 2015.


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