Mellon Picks up Hedge Fund Group

June 7, 2002 ( - Mellon Financial Corporation will acquire HBV Capital Management LLC, a New York- and London-based investment management company specializing in single-manager hedge funds.

HBV has approximately $530 million in assets under management and specializes in investment strategies at the lower-risk end of the hedge fund spectrum.

The group’s product set includes

  • a US Risk Arbitrage Fund,
  • Hedged Distressed Fund and,
  • a Multi-Strategy Fund, and 
  • a European Risk Arbitrage Fund

HBV’s focus on single-manager strategies complements Mellon’s existing fund-of-funds capabilities offered through London-based Mellon Global Alternative Investments Limited and allows HBV to tap new distribution channels and extend its product breadth, Mellon said in a statement.

The transaction, expected to close by the end of the second quarter, will be an all-cash deal, with initial consideration due at closing and further consideration contingent on HBV’s future performance.

HBV will be renamed Mellon HBV Alternative Strategies and operate as a Mellon Institutional Asset Management firm alongside Mellon’s other investment businesses.

Additional terms were not disclosed.