BNY Mellon Sells HedgeMark Business to Innocap
Posted on 02/17/2022
Innocap Investment Management Inc. (Innocap) entered into a definitive agreement to acquire BNY Mellon’s HedgeMark business to create a single technology-enabled alternative investment platform. BNY Mellon’s HedgeMark specializes in supporting institutional clients in the development and operation of their own private hedge fund dedicated managed account platforms.
The consideration for the sale will be a combination of cash and Innocap shares, allowing BNY Mellon to own a minority equity stake in Innocap’s combined US$ 50 billion global platform, which focuses on helping institutional allocators access their investments through managed account services providing customized investment solutions, meaningful control, increased transparency, and operational alpha over their investment portfolios.
BNY Mellon will join tenured Innocap reinvesting shareholder Caisse de depot et placement du Quebec (CDPQ), BNP Paribas and management of both Innocap and HedgeMark as shareholders at closing. In addition, the shareholder base will include new institutional investors Fonds de solidarité FTQ and Walter Global Asset Management. Through this transaction, this reputable group of shareholders recognizes that platform investing is an increasingly important way to access alternative investments.
The transaction is subject to normal closing conditions and regulatory approval, and is expected to close in the first half of 2022.
In 2014, BNY Mellon took on full ownership of HedgeMark International by purchasing a 65% stake held by HedgeMark management and outside investors. BNY Mellon has held a 35% stake in the firm since 2011.
Keywords: Bank of New York Mellon.