BNY Mellon Investment Management is to sell its real assets boutique CenterSquare Investment Management to the firm's management team and private equity firm Lovell Minnick Partners.
Founded in 1987, CenterSquare manages investments for institutional investors and high-net-worth individuals across public and private capital sectors.
The Philadelphia-based boutique, which focuses on actively-managed real estate and infrastructure strategies, had approximately $9 billion in assets under management in US and global real estate and infrastructure investments as of June 30.
‘Our firm has enjoyed significant growth over the last 11 years with BNY Mellon and we will continue our partnership via a number of subadvisory relationships,’ said Todd Briddell, chief executive of CenterSquare.
Founded in 1999, private equity firm Lovell Minnick Partners specializes in investing in the financial and related business services sectors. The firm provides developing companies with equity capital to support private company recapitalizations, leveraged buyouts and growth initiatives.
Lovell Minnick Partners has raised $1.7 billion in committed capital and has completed investments in over 30 companies since its inception in 1999.
The transaction is aimed at streamlining BNY's portfolio of asset managers so it has a focused set of specialist investment solutions for clients, according to Mitchell Harris, chief executive of BNY Mellon Investment Management.
'We will continue to offer real asset investment solutions through our other investment boutiques,’ said Harris.
BNY has 12 remaining affiliate boutiques, of which five offer real asset investment strategies. These are: Amherst Capital Management, ARX, The Boston Company Asset Management, Insight Investments, Mellon Capital and Standish.
Terms of the transaction, which is subject to standard regulatory and other required approvals, were not disclosed. The deal is expected to be completed by the end of the year.
BNY Mellon Investment Management, which encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies, had $1.8 trillion in assets under management as of June 30.