The bank, which has held a 35% stake in the company, has now signed an agreement to buy the remaining 65%, subject to regulatory approval. The deal is expected to close in Q2. It is not known how much BNY Mellon will pay for the 65% stake.
According to BNY Mellon, institutional investors are increasingly turning to managed accounts to invest in hedge funds in order to provide more customisation, 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."
HedgeMark founder and CEO Ken Phillips has announced he will retire once the buyout is complete. Current president Andrew Lapkin will replace Phillips. Lapkin will help to supervise the transition and will report to Pandiri following the completion of the acquisition.