Hedge funds: BoNY-Mellon now sixth biggest administrator
Private equity and hybrids are main planks of growth strategy aimed at taking merged company to third place.
"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"
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.