Bank of New York Mellon Corp. is expanding further into the fast-growing retail wealth market by acquiring the Archer technology firm to handle infrastructure and distribution of managed accounts to financial advisers and their clients.
The acquisition of Berwyn, Pennsylvania-based Archer will also help BNY market its own investment strategies and custody bank business, according to a statement Thursday. The deal is expected to be completed in the fourth quarter, pending regulatory approval. Terms weren’t disclosed.
“Managed accounts — and very specifically retail-managed accounts — are one of the fastest-growing products in the asset-management industry,” Emily Portney, BNY’s global head of asset servicing, said in an interview.
The biggest money managers are increasingly focused on the US wealth market, partnering or buying technology and firms to distribute managed accounts, model portfolios and private assets to wealthy clients. The retail managed account business in the US is projected to grow to more than $8 trillion by 2027 from almost $5 trillion last year, according to BNY’s analysis of data from Cerulli Associates.
Archer was founded in 2000 to help investment managers outsource technology and middle- and back-office operations. Asset managers use its technology for accounting, data reporting and reconciliation of transactions, and it then connects with banks and investment platforms that distribute financial investment strategies.
BNY had almost $50 trillion of assets under custody and administration as of June 30.
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