Bank of New York Mellon (BK) is partnering with Amherst Holdings to launch a new company that will focus on real estate credit management.
The companies established Amherst Capital Management, which will be a majority-owned subsidiary of Standish, BNY Mellon's fixed-income-focused investment boutique, and will be co-owned by Amherst Holdings.
According to the companies, BNY Mellon and Texas Treasury Safekeeping Trust Company have made “significant capital commitments” to the new company.
"Combining Amherst's expertise and proprietary analytics with BNY Mellon's existing real estate strategies, underpinned by the support from a world-class investor in Texas Trust, allows us to deliver a greater range of customized real estate investment options to our clients than ever before," said Curtis Arledge, CEO, BNY Mellon Investment Management.
"The changing regulatory landscape has created new opportunities for investors to meet the demand for what has become an underserved real estate credit market,” Arledge continued. “We see a great opportunity for ACaM real estate investment solutions as a result."
According to the companies, Amherst Capital Management will “utilize Amherst's proprietary data, analytics and market insight, giving the platform a unique perspective” on the performance of assets.
“As a result, Standish will be able to leverage Amherst Capital Management’s significant real estate and mortgage expertise and proprietary analytics to support its multi-sector investment strategies,” the companies continued. “Amherst Capital Management will initially be focused on direct lending opportunities, with plans to launch additional strategies in the future.”
Sean Dobson has been appointed chief executive officer of Amherst Capital Management.
“We are thrilled to be launching a real-estate-debt-focused asset management platform with such distinguished partners,” Dobson said.
“The BNY Mellon boutique model provides an ideal environment for ACaM to focus on investment opportunities, while leveraging a global management infrastructure,” Dobson added. “With the added financial support of BNY Mellon and Texas Trust, we can react with scale and in a timely fashion, to the many evolving opportunities in the post-crises real estate capital markets."
Paul Bullard, the CEO and chief information officer of Texas Trust, said that the company sees a great opportunity with Amherst Capital Management.
"We couldn't be more impressed with the combination of BNY Mellon's world-class investments platform and Sean Dobson's deep understanding of the real estate market,” Bullard said. We are very excited to be a part of the founding team and participating in Amherst Capital Management."