BNY Investments

BNY Investments

Company type	Division
Industry	Investment management
Predecessor	BNY Asset Management, Mellon Asset Management
Founded	2007
Headquarters	Manhattan , United States
Products	Asset management, investment management
Parent	BNY Mellon

BNY Investments serves as the investment management branch of BNY and is recognized as one of the globe's leading asset managers. It operates under a multi-boutique framework, which grants considerable independence to its individual investment teams.

Background

The foundation of BNY Investments was laid through the combination of BNY Asset Management and Mellon Asset Management, the respective investment management divisions of Bank of New York and Mellon Financial.

In July 2007, the merger between Bank of New York and Mellon Financial resulted in the creation of BNY Mellon Investment Management (BNY Mellon IM), uniting these two asset management entities. At that point, Mellon Asset Management was substantially larger, overseeing $930 billion in assets under management, compared to BNY Asset Management’s $179 billion. Mellon’s portfolio included firms such as Dreyfus, Newton, Walter Scott, Boston Company Asset Management, and Standish Mellon Asset Management. On the other hand, BNY’s subsidiaries comprised Ivy Asset Management, Alcentra, and Urdang Capital Management. Leadership roles were predominantly assumed by executives from Mellon, including CEO Ronald O’Hanley, while several senior leaders from BNY left after the merger.

Following the merger, BNY Mellon IM pursued growth in emerging markets. In 2007, it entered Brazil through the acquisition of ARX Capital Management and established a joint venture with Western Securities in China aimed at retail asset management. The firm also sought strategic alliances with Middle Eastern sovereign wealth funds such as the Kuwait Investment Authority and Abu Dhabi Investment Authority.

In 2009, BNY Mellon IM expanded its capabilities by acquiring Insight Investment from Lloyds Banking Group for £235 million and securing a 20% ownership stake in Siguler Guff.

By early 2010, BNY Mellon IM decided to shut down Ivy Asset Management, its fund-of-hedge-funds operation, due to client losses connected to Amaranth Advisors and scrutiny regarding its advisory role on investments linked to Bernie Madoff. Ivy subsequently reached a settlement with US regulators for $210 million in 2012.

In September 2017, BNY Mellon IM divested its real assets division, CenterSquare Investment Management (previously known as Urdang Capital Management), selling it to Lovell Minnick Partners.

The year 2018 saw BNY Mellon IM streamline operations by merging three entities—Mellon Capital Management, Standish Mellon Asset Management, and The Boston Company Asset Management—into a single unit named Mellon Investments to better manage increasing technology and research expenditures.

In May 2022, Franklin Templeton Investments agreed to purchase the Alcentra private credit business from BNY Mellon IM for $1 billion. This transaction closed on November 1, 2022, with the sale price reflecting diminished business performance and resulting in a value loss for BNY Mellon IM.

As of January 2023, BNY IM reported a 24.6% reduction in assets under management as of December 31 year-over-year, influenced by declining market valuations, a stronger US dollar, and the Alcentra divestiture.

In June 2024, the division underwent rebranding and adopted the name BNY Investments.