BNY is looking to add managed accounts and alternative and private market investment products as it looks to continue growing.
This announcement came as the global financial services company reported third-quarter results that showed growth across its three business segments — security services, market and wealth services, and investment and wealth management — and saw it top $50 trillion in assets under custody and/or administration for the first time, according to its Friday (Oct. 11) earnings release.
“Our actions to run our company better, including our ongoing transition to a platforms operating model, are starting to deliver progress toward our medium-term financial targets and additional capacity to reinvest for growth through new and enhanced client solutions,” Robin Vince, president and CEO at BNY, said in the release.
“In the third quarter, this focus on being more for our clients included the announcement of the planned acquisition of Archer, that will deliver an enterprise solution to clients in the fast-growing managed account ecosystem, and the introduction of Alts Bridge to broaden investor access to Alternatives,” Vince added.
BNY announced its plans to acquire Archer, a provider of managed account solutions to the asset and wealth management industry, on Sept. 5.
The addition of Archer’s fully integrated, cloud-based platform will enhance BNY’s capabilities across the entire managed account ecosystem, the firm said at the time in a press release. BNY added that the retail managed accounts market is expected to see a double-digit compound annual growth rate over the next three years in the United States.
Subject to regulatory approvals, the transaction is expected to close in the fourth quarter.
BNY announced the launch of its Alts Bridge platform Sept. 16, saying it will provide wealth intermediaries, advisors and investors with expanded access to alternative and private market investment products.
Alts Bridge incorporates data, software and services. It focuses on a market in which global alternative assets under management are expected to see a forecast annualized growth rate of 8.4% from 2022 to 2028, BNY said in a press release announcing the launch.
With its existing offerings, BNY saw a 5% year-over-year increase in revenue in the third quarter, according to the Friday earnings release.
The company attributed the gains to an increase in fee revenue driven by higher market values, net new business and higher foreign exchange revenue; improved results from seed capital investments; and an increase in net interest income driven by improved investment securities portfolio yields and balance sheet growth.