BNY Mellon, Texas Treasury Safekeeping Trust Company to Exchange Ownership Stakes in Amherst Capital for Minority Interest in Amherst Holdings.
15 May 2018 - US-based financial services group BNY Mellon's BNY Mellon Investment Management and Amherst Holdings, LLC have inked an agreement through which BNY Mellon will exchange its majority equity interest in Amherst Capital Management LLC, an investment manager specializing in US real estate, for a minority equity stake in Amherst Holdings, the companies said.
Concurrently, Texas Treasury Safekeeping Trust Company, a founding seed investor in Amherst Capital, will swap its current economic interest in Amherst Capital for an interest in Amherst Holdings.
Following the completion of the transaction, Amherst Capital will be a wholly owned subsidiary of Amherst Holdings.
This transaction will create more opportunities for Amherst Capital to accelerate its growth and develop new initiatives as a fully integrated business within Amherst Holdings.
Amherst Capital's goal of providing specialized US real estate investment solutions across private debt, private equity and public markets will remain unchanged, with all strategies underpinned by the same research capabilities and investment philosophy, the principals said.
BNY Mellon will continue to offer Amherst Capital's real estate solutions to its clients, while benefiting from the ongoing growth and potential to engage with Amherst Holdings on other real estate investment opportunities.
This transaction will also enable TTSTC to further strengthen its partnership with Amherst Holdings by broadening its exposure to Amherst Holdings' innovative investment strategies and growth potential.
Formed in 2015 as a partnership between BNY Mellon and Amherst Holdings, Amherst Capital has launched real estate-focused investment strategies that have attracted interest across key markets globally.
Fully integrating Amherst Capital's investment services within Amherst Holdings will streamline operations, harmonize executive functions and allow for combined investment in research, client services and other critical tasks.
At closing, Amherst Holdings, along with its affiliates and subsidiaries, will have more than USD 3.6bn under management, and approximately USD 15bn under advisement and oversight through its affiliated broker dealer, Amherst Pierpont, and will have over 850 employees covering the firm's asset management, investment banking and single-family residential businesses.
Terms of the transaction were not disclosed. The transaction is expected to close within 90 days and is subject to customary closing conditions.
For over 20 years, Amherst Holdings and its affiliates have provided institutional investors with a suite of financial services related to the US real estate, mortgage and securitized product markets.
During this period, Amherst Holdings has made extensive investments to develop data, technology resources and proprietary analytical tools that have helped position the firm as a market leader in the areas of real estate risk analysis and behavioral economics.
Amherst Capital Management is a real estate investment specialist established in 2015 as a majority-owned subsidiary of BNY Mellon, and is minority-owned by Amherst Holdings, LLC.
Texas Treasury Safekeeping Trust Company is a founding seed investor. Amherst Holdings is not an affiliate of BNY Mellon. Amherst Capital offers traditional and alternative real estate investment strategies to private and institutional investors globally.
BNY Mellon is the corporate brand of The Bank of New York Mellon Corp. (NYSE: BK).
Sector: Banking/Financial Services
Target: Amherst Holdings/majority stake
Buyer: BNY Mellon Investment Management
Vendor: Amherst Holdings
Deal size in USD:
Type: Corporate Acquisition
Financing: Cash and Stock
Buyer advisor: , ,
Comment: In exhange, BNY Mellon will exchange its majority equity interest in Amherst Capital Management
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|Publication:||M & A Navigator|
|Date:||May 15, 2018|
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