Bank of New York Mellon Corp. has expanded its alternative investment services by acquiring the fund of hedge funds administration business of Lamp Technologies LLC of Dallas.
The purchase was announced Monday. Bank of New York Mellon did not say how much it paid.
Richard P. Stanley, a Bank of New York Mellon executive vice president and the head of the product management group in its alternative investment services unit, said the acquisition will help his company compete more effectively for the $600 billion to $700 billion of incremental institutional hedge fund investments that are expected by 2010, some of which are likely to go to funds of funds.
"Lamp Technologies enhances our capacity and capabilities in the fund of hedge funds space in two ways: the platform that we're buying and the expertise that will enhance our expertise," Mr. Stanley said.
Six Lamp employees, including its founder and chief executive, Aladin Abughazaleh, have joined Bank of New York Mellon's Dallas operation.
Bank of New York Mellon already offered hedge fund administration, accounting, cash management, custody, wealth management, and other services to the hedge fund industry. It plans to incorporate Lamp's technology into its own offerings, Mr. Stanley said.
"They could only offer the administration piece of the equation," he said. "They couldn't offer the custody, the banking services, the foreign exchange, trade execution services, the global presence, the balance sheet."
