BNY Mellon has signed an agreement to acquire the remaining 65 percent 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 of 2014, subject to regulatory approval. Financial terms of the transaction were not disclosed.
BNY Mellon has held a 35 percent 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 customisation, transparency, liquidity and control.
Samir Pandiri, executive vice president and CEO of asset servicing at BNY Mellon, said: “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. “
“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, founder and CEO of HedgeMark, has announced his intention to retire once the transaction has been completed. HedgeMark's board of directors will appoint Andrew Lapkin, the current president, as its new CEO.
