Mellon Picks Up Evaluation Associates Capital Markets

June 10, 2004 ( - Mellon Financial Corporation is buying Evaluation Associates Capital Markets (EACM), a $4.5 billion asset manager that offers hedge fund-of-funds and manager-of-managers investment strategies, Mellon announced.

Ronald O’Hanley, Mellon vice chairman and president of its institutional asset management business, said EACM will particularly broaden Mellon’s offerings in the manager-of-managers space, i n the Mellon news release.

“The hedge fund-of-funds business has been one of the fastest growing segments within alternatives over the last four years,” Hanley said in the announcement. “I’m confident this addition will help us meet the increasing interest from our core client base – pension funds, endowments and other institutions – that would like to invest in the hedge fund space through a hedge fund-of-funds provider.”

EACM manages approximately $2.7 billion in the hedge fund-of-fund strategies and $1.8 billion in manager-of-managers strategies. In its hedge fund-of-funds strategies, EACM invests in a wide range of hedge funds, including relative value, event-driven and directional strategies. In its manager-of-manager strategies, EACM selects and oversees diversified teams of long-only equity and fixed income money managers, according to the announcement.

Phillip Maisano, EACM chairman and chief executive, and William Crerend, EACM president, will continue to lead the organization, which will become a Mellon subsidiary. The transaction, terms of which were not disclosed, is scheduled to close before the end of the third quarter of 2004.

Headquartered in Norwalk, Connecticut, EACM has been in business since 1984. EACM and Evaluation Associates Inc. (EAI) split in December 31, 2003, when the EAI consulting business was sold to Milliman Corporation (See Milliman to Acquire Connecticut Investment Consultant ).