The Bank of New York Company, Inc. to Acquire Alcentra Group Limited
Expands Alternative Investment Offerings with Structured Credit Products; Alcentra Management Team to Retain 20% InterestNEW YORK and LONDON, October 18, 2005 -- The Bank of New York Company, Inc., has signed a definitive agreement to acquire an 80 percent ownership interest in Alcentra Group Limited, an international asset management group focused on funds which invest in sub-investment grade debt. Alcentra has operations in London and Los Angeles and currently manages 15 different investment funds with over $6.2 billion of assets under management.
The transaction is expected to close by year-end, pending regulatory approval and other customary conditions of closing. The purchase price and terms were not disclosed.
"The acquisition of Alcentra will further strengthen our position in alternative investments, leveraging the significant success we've had with Ivy Asset Management, our fund of hedge funds manager," said Thomas A. Renyi, Chairman and Chief Executive Officer of The Bank of New York Company, Inc. "Sub-investment grade debt fund management and structured credit are highly attractive, fast-growing market segments, and Alcentra has developed a significant profile in these areas."
Steven Pisarkiewicz, head of BNY Asset Management and Executive Vice President of The Bank of New York, said, "The Alcentra team has a proven track record and investment model and we believe they are well positioned to continue to deliver strong performance to investors. Through Alcentra, we gain access to sophisticated, structured credit products for our institutional and high net worth clients while increasing the global distribution opportunities for Alcentra. Together, we will be at the forefront of helping insurance companies as well as pension, endowment and foundation managers use credit-based investment services to support their asset allocation strategies."
The Alcentra management team, led by founders Stephen Bruce, Christopher Damico and David Forbes-Nixon, will retain a 20% shareholder interest in the company.
"Over the past few months our team has worked closely with the professionals at The Bank of New York to agree to a transaction which brings significant strategic benefits to both parties," said Christopher Damico, Alcentra's Chief Executive Officer. "The Bank of New York has a well developed global business base which our company will be able to access and leverage. Therefore, we look forward to the future of Alcentra under The Bank of New York’s sponsorship."
Ivy Asset Management, acquired by The Bank of New York Company, Inc., in 2000, now has more than $15 billion in assets under management.
BNY Asset Management offers corporations, public funds, Taft/Hartley plans, nonprofit organizations and high net-worth individuals and families a broad range of equity, fixed-income and alternative investment products. With more than $107 billion in assets under management as of Sept. 30, 2005, BNY Asset Management is one of the largest investment managers in the United States. BNY Asset Management also has affiliates and offers investment services throughout Europe and Asia.
The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.
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