Mellon Financial Corporation is acquiring Evaluation Associates Capital Markets (EACM), a USD 4.5 billion fund of hedge funds manager based in Norwalk, CT.
The transaction, terms of which were not disclosed, is scheduled to close before the end of the third quarter of 2004.
EACM manages approximately USD 2.7 billion in funds of hedge funds and USD 1.8 billion in manager-of-managers strategies. In its fund of hedge funds, EACM invests in a wide range of hedge funds, including relative value, event-driven and directional strategies. In its manager-of-manager strategies, EACM selects and oversees diversified teams of long-only equity and fixed income money managers.
"The hedge fund-of-funds business has been one of the fastest growing segments within alternatives over the last four years," said Ronald P. O'Hanley, Mellon vice chairman and president of its institutional asset management business. "EACM, with more than 20 years of experience, has been one of the leaders in this segment. Furthermore, EACM's institutional roots ensure the quality strategies, in-depth analysis and robust processes consultants and institutional clients expect. I'm confident this addition will help us meet the increasing interest from our core client base -- pension funds, endowments and other institutions -- that would like to invest in the hedge fund space through a fund of hedge funds provider."
O'Hanley also noted that EACM will broaden Mellon's offerings in the manager-of-managers space. He added, "The new services that we are making available through EACM, along with Mellon's broad asset-servicing and human resources solution capabilities, can provide clients with a diverse selection of bundled services."
Phillip N. Maisano, EACM chairman and chief executive, and William C. Crerend, EACM president, will continue to lead the organisation, which will become a Mellon subsidiary.
Maisano said: "Our common consultative approach to helping clients find solutions for their investment needs makes this a terrific partnership. Also, by leveraging Mellon's global distribution reach and organizational capabilities, we expect to grow our business and provide our clients and employees with additional opportunities."
Headquartered in Pittsburgh, Mellon is one of the world's leading providers of financial services for institutions, corporations and high net worth individuals, providing institutional asset management, mutual funds, private wealth management, asset servicing, human resources services and treasury services.
Mellon has approximately USD 3.6 trillion in assets under management, administration or custody, including more than USD 675 billion under management. Its asset management companies include The Dreyfus Corporation, Mellon HBV and UK.-based Newton Investment Management Limited.