BNY Mellon has signed an agreement to acquire the remaining 65 per cent interest of HedgeMark International, 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 per cent 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.
"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," says 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.”
Ken Phillips, HedgeMark's founder and CEO, 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.
"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," says Lapkin. "We look forward to taking our partnership to the next level in the years ahead."