NEW YORK and AUSTIN, Texas, May 14, 2018 /PRNewswire/ -- BNY Mellon Investment Management ("BNY Mellon"), and Amherst Holdings, LLC ("Amherst Holdings"), today announced an agreement through which BNY Mellon will exchange its majority equity interest in Amherst Capital Management LLC ("Amherst Capital"), an investment manager specializing in U.S. real estate, for a minority equity stake in Amherst Holdings. Concurrently, Texas Treasury Safekeeping Trust Company ("TTSTC"), 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 commitment to providing specialized U.S. 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.
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.
"At Amherst Holdings, we have built our reputation using results-driven data and analytics to help investors identify and evaluate attractive U.S. real estate investment opportunities," said Sean Dobson, Chairman and CEO of Amherst Holdings, CEO and CIO of Amherst Capital. "Fully integrating Amherst Capital within Amherst Holdings, and in turn optimizing our relationship with BNY Mellon, will help us better utilize resources and expertise across our entire investment platform, positioning Amherst Holdings to continue delivering innovative real estate investment opportunities to investors seamlessly across our business lines to capitalize on market opportunities."
"This transaction meets BNY Mellon's strategy of delivering strong investment alternatives to our global client base. Maintaining an ongoing stake in Amherst Holdings ensures BNY Mellon will benefit from Amherst Holdings' continued growth and access to Amherst Capital's leading real estate strategies for our clients," said Mitchell Harris, CEO of BNY Mellon Investment Management.
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 $3.6 billion under management, and approximately $15 billion 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.
About Amherst Holdings
For over 20 years, Amherst Holdings and its affiliates have provided institutional investors with a broad suite of financial services related to the U.S. 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 Holdings was one of few mortgage specialists to anticipate the mortgage crisis and has continued to use its experience and analytic resource advantages to evaluate new risks and opportunities in the real estate markets. The firm is majority owned by its employees and employs approximately 775 professionals across its single family residential, asset management, investment banking and technology platforms. For more information, please visit www.amherst.com.
About Amherst Capital Management
Amherst Capital Management LLC 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 ("TTSTC") 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. Amherst Capital's investment strategies are grounded in deep intellectual capital and differentiated technology designed to help clients meet their portfolio needs. For more information, please visit www.amherstcapital.com
About BNY Mellon Investment Management
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.9 trillion in assets under management as of March 31, 2018. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. BNY Mellon Investment Management is part of BNY Mellon, which has $33.5 trillion in assets under custody and/or administration as of March 31, 2018. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE :BK ). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
Tom Johnson/Dan Scorpio
This information may contain forward-looking statements, which may be expressed in a variety of ways, include the use of future or present tense language. These statements and other forward-looking statements are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond BNY Mellon's control). Factors that could cause BNY Mellon's outcomes to differ materially from those described in the forward-looking statements can be found in the risk factors set forth in BNY Mellon's Annual Report on Form 10-K for the year ended Dec. 31, 2017, the Quarterly Report on Form 10-Q for the period ended March 31, 2018, and its other filings with the Securities and Exchange Commission. All forward-looking statements in this news release, speak only as of the date of publication and BNY Mellon undertakes no obligation to update any forward-looking statement.
1 It is not known whether the listed client approves or disapproves of the adviser or the advisory services provided.
SOURCE BNY Mellon