Global financial services company The Bank of New York Mellon Corporation (BNY) announced BNY has entered into a definitive agreement to acquire Archer Holdco, a leading technology-enabled service provider of managed account solutions to the asset and wealth management industry.
Archer offers asset and wealth managers with comprehensive middle- and back-office solutions for addressing the managed account needs of institutional, private wealth and retail investors. And with its fully integrated and cloud-based platform, Archer helps clients to expand distribution, streamline operations, launch new investment products and deliver personalized outcomes to a broader market.
With the integration of Archer’s managed account solutions, capabilities, professional servicing team, etc., BNY will enhance its enterprise platform to support retail managed accounts, a market that is projected to grow at a double-digit compound annual growth rate to over $8 trillion in assets over the next three years in the U.S.
Along with supporting BNY’s existing asset servicing capabilities for managed accounts, Archer will provide BNY Investments and BNY Pershing’s Wove wealth platform for advisors with expanded distribution of model portfolios and access to Archer’s multi-custodial network.
The deal is expected to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions. Financial terms were not disclosed. And the financial impact of the transaction is not expected to be material to BNY’s earnings and its previously communicated outlook for capital returns.
KEY QUOTES:
“Managed accounts are one of the fastest-growing investment vehicles in the asset management industry, enabling investment advisors and asset managers to offer customized portfolios to retail investors at scale. By combining Archer’s market-leading capabilities with BNY’s broader footprint and expertise, BNY will offer fully integrated, end-to-end retail managed account solutions across our entire platform.”
– Emily Portney, Global Head of Asset Servicing at BNY
“Today’s asset and wealth managers have a strong desire to create multi-asset solutions across a variety of products, along with direct indexing and tax optimized portfolios, to meet the needs of their distribution partners and investors. As a new addition to the BNY platform, Archer’s expertise, capabilities and scale will be leveraged across all of BNY to help even more clients drive long-term growth for their businesses.”
– Bryan Dori, President and CEO of Archer
