BNY Mellon’s Pershing to acquire Optimal Asset Management

By: Gabrielle Saulsbery
December 2, 2021 2:42 pm

[vc_row][vc_column][vc_column_text]BNY Mellon’s Pershing entered into an agreement to acquire California-based Optimal Asset Management Inc., a direct indexing solutions provider.

Optimal Asset Management’s software provides customizable direct indexing solutions to investors seeking personalized portfolios that are aligned to their values. The company meets a growing need for investment customization by selecting individual equities in an index solution, including options to tailor their portfolios for sustainable investments.

The acquisition will form part of the new Pershing X offering, a business unit recently launched within Jersey City-based Pershing designed to build innovative solutions for advisory industry clients.

The direct indexing market is expected to grow from $350 billion in assets under management in 2020 to $1.5 trillion in AUM by 2025, according to Morgan Stanley.

“We’re thrilled to welcome Optimal Asset Management’s founder Dr. Vijay Vaidyanathan and his talented team of software architects to Pershing X. Optimal Asset Management will help advisors at our client firms improve relationships and grow their business,” said Pershing X President Ainslie Simmonds.

“The acquisition of Optimal Asset Management is the latest step in our Pershing X buildout, which aims to fuel growth by helping clients solve the challenge of managing multiple and disconnected technology tools and data sets,” said Jim Crowley, Pershing’s CEO. “As part of our continued efforts to provide clients with innovative offerings, we’re delighted to now be able to offer Optimal Asset Management’s direct indexing capabilities to our advisory clients within Pershing, as well as to our institutional and retail clients within BNY Mellon’s Investment Management business.”

PJT Partners is serving as financial advisor and Cooley LLP is serving as legal advisor to Optimal Asset Management. Sullivan & Cromwell LLP is serving as legal advisor to BNY Mellon’s Pershing.

Financial terms of the transaction were not disclosed. The transaction is subject to customary conditions and is expected to close by the end of 2021.[/vc_column_text][/vc_column][/vc_row]