Innocap Investment Management to buy BNY Mellon's HedgeMark business

Managed account services provider Innocap Investment Management Inc. agreed to acquire The Bank of New York Mellon Corp.'s HedgeMark business to establish a single technology-enabled alternative investment platform.

Under the deal, Innocap will acquire the business with a combination of cash and company shares, giving BNY Mellon a minority stake in the company, according to a news release. BNY Mellon will join Caisse de dépôt et placement du Québec, BNP Paribas SA and the management of both Innocap and HedgeMark as shareholders at closing.

The shareholder base will also expand to include Fonds de solidarité FTQ and Walter Global Asset Management Inc.

The transaction is expected to close in the first half of 2022.

The combined organization will have 300 employees, and HedgeMark's current management is expected to join the Innocap team in senior roles. HedgeMark's Josh Kestler will become Innocap's president.

BNY Mellon acquired HedgeMark's outstanding stake in 2014.