BNY Mellon Asset Management has acquired a 20 percent minority stake in Siguler Guff for an undisclosed amount.
“In the aftermath of the financial crisis, institutional and individual investors are seeking more diversification and increased exposure to alternatives,” Ronald O’Hanley, president and chief executive officer of BNY Mellon Asset Management, said in a statement. “Current market conditions have led to extraordinary demand for distressed opportunity managers.”
Siguler Guff, launched in 1991 within Paine Webber, has been working closely with BNY Mellon since earlier this year. The firm engaged BNY Mellon to distribute products and services on a global scale. In May 2009, Siguler Guff Advisors, the firm’s registered investment advisor, became advisor to the private equity fund of funds previously advised by West LB Mellon Asset Management.
Earlier this year, Siguler Guff hired former Cohen & Steers chief investment officer James Corl to head up the firm’s distressed real estate investing activities. The firm had previously focused on debt and small buyouts.
George Siguler, co-founder of the firm, said at the time the firm was planning to create a real estate vehicle targeting distressed real estate opportunities “both through outside managers and direct co-investment opportunities”.
The firm has about $8 billion of assets under management.
BNY Mellon provides financial services for institutions, corporations and high net-worth individuals. BNY Mellon has $22.1 trillion of assets under custody and administration and $966 billion in assets under management.
BNY Mellon buys 20% stake in Siguler Guff
The deal will allow the financial services giant's asset management division to give its clients access to private equity. Siguler Guff is the midst of putting together a real estate fund following the appointment of James Corl.