BNY Mellon announced that it has reached a definitive agreement to acquire Archer, a leading technology service provider of managed account solutions for the wealth and asset management industry.
“Archer provides asset and wealth managers with comprehensive middle-office and back-office solutions to meet the managed account needs of institutional, private, and retail investors,” the firm’s statement says.
Through its fully integrated, cloud-based platform, Archer helps its clients expand distribution, streamline operations, launch new investment products, and deliver personalized outcomes to a broader market, the text adds.
With the integration of Archer’s managed account solutions, capabilities, and professional services team, BNY will enhance its enterprise platform to support retail managed accounts, a market expected to grow at a double-digit compound annual growth rate to over eight trillion dollars in assets in the next three years in the U.S., according to data from Cerulli.
“Managed accounts are one of the fastest-growing investment vehicles in the asset management industry, enabling investment advisors and asset managers to deliver personalized portfolios to retail investors at scale,” said Emily Portney, Global Head of Asset Servicing at BNY.
In addition to enhancing BNY’s current capabilities in asset servicing for managed accounts, Archer will provide BNY Investments and BNY Pershing’s Wove wealth platform for advisors with expanded model portfolio distribution and access to Archer’s multi-custodial network, the company notes.
“Today’s asset and wealth managers have a strong desire to create multi-asset solutions through a variety of products, along with direct indexing and tax-optimized portfolios, to meet the needs of their distribution partners and investors,” added Bryan Dori, President and CEO of Archer.
The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions.
