Integrates with and complements the company's Global Risk Solutions capabilities; Meets demand for more transparency and control from institutions investing in hedge funds
BNY Mellon, a global leader in investment management and investment services, announced that it has signed an agreement to acquire the remaining 65% interest of HedgeMark International, LLC, a current affiliate and a provider of hedge fund managed account and risk analytic services.
The deal is expected to close in the second quarter, subject to regulatory approval. Financial terms of the transaction were not disclosed. BNY Mellon has held a 35% ownership stake in HedgeMark since 2011.
Founded in 2009 and headquartered New York, HedgeMark assists in the structuring, oversight, and risk monitoring of hedge funds, specifically dedicated managed accounts. More and more, institutional investors globally are using dedicated managed accounts – single investor funds – as a way to invest in hedge funds that allow for greater customization, 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.
"We want to thank Ken Phillips, HedgeMark's founder and CEO, for his tremendous contributions building HedgeMark into a recognized and respected industry player in such a short time. He's been a dedicated leader and driving force behind their success," said Pandiri.
Phillips has announced his intention to retire when the transaction is completed. HedgeMark's board of directors will appoint Andrew Lapkin, current president, as its new CEO. Lapkin will help supervise the transition and report to Pandiri after the closing. "Andrew will bring deep experience and a sharp focus as we move forward together," Pandiri added.
"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," said Lapkin. "We look forward to taking our partnership to the next level in the years ahead."
BNY Mellon's Asset Servicing business supports institutional investors in today's fast-evolving markets, safeguarding assets and enhancing the management and administration of client investments through services that process, monitor and measure data from around the world. We leverage our global footprint and local expertise to deliver insight and solutions across every stage of the investment lifecycle.