BNY Mellon Investment Management (“BNY Mellon”), and Amherst Holdings, LLC (“Amherst Holdings”), have announced an agreement through which BNY Mellon will exchange its majority equity interest in Amherst Capital Management LLC (“Amherst Capital”), an investment manager specialising in U.S. real estate, for a minority equity stake in Amherst Holdings. Concurrently, Texas Treasury Safekeeping Trust Company (“TTSTC”), a founding seed investor in Amherst Capital, will swap its current economic interest in Amherst Capital for an interest in Amherst Holdings. Following the completion of the transaction, Amherst Capital will be a wholly owned subsidiary of Amherst Holdings.
This transaction will create more opportunities for Amherst Capital to accelerate its growth and develop new initiatives as a fully integrated business within Amherst Holdings. Amherst Capital’s commitment to providing specialized U.S. real estate investment solutions across private debt, private equity and public markets will remain unchanged, with all strategies underpinned by the same research capabilities and investment philosophy.
BNY Mellon will continue to offer Amherst Capital’s real estate solutions to its clients, while benefiting from the ongoing growth and potential to engage with Amherst Holdings on other real estate investment opportunities. This transaction will also enable TTSTC to further strengthen its partnership with Amherst Holdings by broadening its exposure to Amherst Holdings’ innovative investment strategies and growth potential.
“At Amherst Holdings, we have built our reputation using results-driven data and analytics to help investors identify and evaluate attractive U.S. real estate investment opportunities,” said Sean Dobson, Chairman and CEO of Amherst Holdings, CEO and CIO of Amherst Capital. “Fully integrating Amherst Capital within Amherst Holdings, and in turn optimizing our relationship with BNY Mellon, will help us better utilize resources and expertise across our entire investment platform, positioning Amherst Holdings to continue delivering innovative real estate investment opportunities to investors seamlessly across our business lines to capitalize on market opportunities.”
“This transaction meets BNY Mellon’s strategy of delivering strong investment alternatives to our global client base. Maintaining an ongoing stake in Amherst Holdings ensures BNY Mellon will benefit from Amherst Holdings’ continued growth and access to Amherst Capital’s leading real estate strategies for our clients,” said Mitchell Harris, CEO of BNY Mellon Investment Management.
Formed in 2015 as a partnership between BNY Mellon and Amherst Holdings, Amherst Capital has launched real estate-focused investment strategies that have attracted interest across key markets globally. Fully integrating Amherst Capital’s investment services within Amherst Holdings will streamline operations, harmonize executive functions and allow for combined investment in research, client services and other critical tasks.
At closing, Amherst Holdings, along with its affiliates and subsidiaries, will have more than $3.6 billion under management, and approximately $15 billion under advisement and oversight through its affiliated broker dealer, Amherst Pierpont, and will have over 850 employees covering the firm’s asset management, investment banking and single-family residential businesses.
Terms of the transaction were not disclosed. The transaction is expected to close within 90 days and is subject to customary closing conditions.