Mellon Acquires Hedge Fund Back-Office Outsourcing Firm

Through its Asset Servicing group,  Mellon has acquired the company – which oversees $30 billion in assets for 91 clients -for terms that were not disclosed. The acquisition is scheduled to close by the end of the first quarter, according to a press release from the company.

DPM provide middle- and back-office outsourcing and transparency services.

“The institutional asset management industry is demanding a growing breadth of services from its providers, and this investment helps bolster our position at the forefront of the asset servicing industry,” said James Palermo, Mellon vice chairman and president of Mellon Global Securities Services, in a the news release.  “DPM is one of the most successful and fastest growing firms in the hedge fund administration arena with a broad set of capabilities.  Furthermore, this acquisition enables Mellon to meet the needs of clients who increasingly are seeking custodians with hedge fund expertise.”

Mellon plans to expand DPM’s operations in Europe as one its main strategies, according to the release.

Mellon already has three hedge fund managers: Mellon HBV Alterative Strategies, Mellon Global Alternative Limit, and EACM.