BNY Mellon has announced that it has reached an agreement to acquire Cutwater Asset Management, a U.S.-based fixed income and solutions specialist with a 20-year track record and approximately $23 billion in assets under management. Located in Armonk, NY, the firm is currently a wholly-owned subsidiary of MBIA Inc.
Upon completion of the deal, Cutwater will operate as part of BNY Mellon Investment Management and will work closely with, and be administered by, Insight Investment. Insight is one of BNY Mellon’s premier investment management boutiques and one of Europe’s leading investment managers. The addition of Cutwater’s capabilities will enhance BNY Mellon’s and Insight’s U.S. platform and abilities to offer specialized fixed income solutions.
Cutwater's products and investment solutions include a wide range of fixed income strategies such as core, long duration, high yield, loans and absolute return strategies.
Curtis Arledge, CEO, BNY Mellon Investment Management, said, “BNY Mellon’s strategy is to deliver the most innovative solutions via the most talented investment managers to meet our clients’ objectives. Cutwater brings an impressive performance history, strong intellectual capital and an investment culture consistent with BNY Mellon’s. Given the unprecedented interest in the fixed income market at this time, we are excited by the opportunity to expand our investment offerings for clients as a result of this combination of fixed income capabilities.”
Abdallah Nauphal, CEO and CIO, Investments, Insight Investment, said, “Insight has grown by aligning our investment solutions with the needs of our clients. Cutwater’s strong U.S. domestic fixed income and solutions track record and experienced team will complement Insight’s strategy in the U.S. as we build upon our existing position as a European leader in liability risk management and fixed income. Working closely with Cutwater will augment our current fixed income capabilities, deepening our fixed income research and portfolio management expertise in the world’s biggest and most diverse credit market.”
Clifford D. Corso, CEO and CIO, Cutwater, added, “Cutwater is delighted to be joining a true global leader in the asset management industry. This union is a logical next step for Cutwater. We share a similar investment philosophy and approach designed to offer products and relevant client solutions.”
BNY Mellon Investment Management is one of the leading fixed income managers with a diversified portfolio of investment boutiques offering fixed income solutions. These include Standish Mellon Asset Management Company, LLC and Mellon Capital Management Corporation headquartered in the U.S.; Insight Investment, the Alcentra Group, and the Newton Group headquartered in the UK; and Meriten Investment Management GmbH headquartered in Germany.
The terms of the transaction were not disclosed. The transaction is subject to standard regulatory approvals and certain other conditions and is expected to close by the beginning of the first quarter of 2015.