WEST PALM BEACH, FL (www.hedgeco.net) – Mellon Financial Corp. said it agreed to buy DPM, a hedge fund administrator based in Somerset, New Jersey. The transaction is slated to close in the firstquarter according to the report. DPM oversees over $30 billion in investor assets for total of 91 clients.
According to James Palermo, vice chairman of Mellon and head of the global custody business, the firm plans to expand the operations of DPM in Europe and to also establish hedge fund servicing office in Dublin.
The acquisition of DPM by Mellon represents the first endeavor of Mellon into the hedge fund administration arena. In recent developments, traditional asset managers have begun branching into the realm of hedge fund management and administration. Pittsburgh-based Mellon oversees more than $3.7 trillion in assets under management, administration or custody. The firm already owns three hedge fund managers — Mellon HBV Alternative Strategies LLC, Mellon Global Alternative Investments Limited and EACM.
Palermo said, “We can now cut across a global financial institution and really be able to support literally all of their different assets or funds such as separately managed accounts, insurance assets, mutual funds and now hedge funds.�
Hedge fund management and administration have become appealing to many traditional asset managers; many analysts believe that some of the obstacles hindering such managers from a more active participation in hedge fund management are being removed with the introduction of SEC registration of hedge funds. There is also the growing interest of institutional investors in hedge fund investment methods; such trend is projected to continue to grow in the future as well.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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