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"Private equity is a big piece of expansion for us. We have won several large mandates already. Similarly we want to capture the growing popularity of hybrid products, like 130/30 funds"
Marina Lewin, Bank of New York Mellon |
The Bank of New York and Mellon Financial Corporation merger completed in July has created the sixth-biggest hedge fund administrator worldwide. The newly named Bank of New York Mellon has $175 billion in hedge fund assets under administration from the merger of the two firms. The merger added more than $50 billion to Bank of New York’s $120 billion. Marina Lewin, managing director of global fund services, who is overseeing the hedge fund administration business, says that the merger now makes the firm the sixth-largest hedge fund administrator by assets under administration. Previously, BoNY, the larger of the two merged firms, was about 11th or 12th largest. BoNY’s hedge fund assets under administration grew by 500% over the past 3.5 years. Assets are at present split among 135 hedge fund and fund of hedge funds clients.
Expansion plans
Lewin says the firm hopes to increase its position to make it the world’s second- or third-largest hedge fund administrator. In the US, BoNY Mellon has the strongest business, with offices in four states, and a presence in Bermuda and the Cayman Islands.
In Asia, BoNY Mellon has a presence in Singapore and Lewin says the firm will look at expanding its presence, as in Europe. "We’re already servicing some large mandates in the Asia hedge fund space, but it’s not an area that can be developed overnight," she says. "We need to look at finding the right people, and implementing suitable technology."
Lewin says the firm is building on the trend towards hybrid products and the convergence of private equity and hedge funds. "Private equity is a big piece of expansion for us. We have won several large mandates already, and are building out that area of the business.
"Similarly we want to capture the growing popularity of hybrid products, like 130/30 funds. We’re uniquely positioned to do so because of the expertise we have in the traditional asset management space, such as collateral management, cash management and mutual fund accounting."
Lewin says the firm will continue to target funds with assets of several hundred million dollars that will make use of the services offered by the broader BoNY Mellon organization, such as short-term money management and private banking.