BNY Mellon’s Pershing to Acquire Optimal Asset Management

December 2, 2021

Deal will provide customized direct indexing solutions to investors seeking tax optimization and personalized portfolios aligned to their values

JERSEY CITY, N.J. — BNY Mellon’s Pershing (“Pershing”) today announced it has entered into a definitive agreement to acquire Optimal Asset Management, Inc. (“Optimal Asset Management”), a direct indexing solutions provider. Optimal Asset Management’s patented, cutting-edge software provides customizable direct indexing solutions to investors seeking personalized portfolios that are aligned to their values. Optimal Asset Management meets a growing client need for greater 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 recently launched business unit within Pershing that will design and build innovative solutions for the advisory industry.

The direct indexing market is expected to grow from $350 billion in assets under management (AUM) in 2020 to $1.5 trillion in AUM by 2025*. “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 Ainslie Simmonds, President of Pershing X.

“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.”

Benefits to clients include:

  • Personalized investor portfolios aligned to values and tax optimization benefits for investors
  • Improved acquisition and retention efforts for advisors through deeper, more personalized investment planning

“We’re excited about joining Pershing X and the possibilities that we can jointly deliver to clients seeking customized direct indexing solutions. We are proud of the reputation we have built at Optimal Asset Management and the industry innovation we’ve delivered,” said Vijay Vaidyanathan, Founder and CEO of Optimal Asset Management.

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. Closing of the transaction is subject to customary conditions and is expected to occur by the end of 2021.

For additional information, please visit Pershing’s website.

*Source: Oliver Wyman/Morgan Stanley

ABOUT BNY MELLON'S PERSHING
BNY Mellon’s Pershing is a leading provider of clearing and custody services. We are uniquely positioned to help complex financial services firms transform their businesses, drive growth, maximize efficiency, and manage risk and regulation. Wealth management and institutional firms outsource to us for trading and settlement services, investment solutions, bank and brokerage custody, middle and back office support, data insights, and business consulting. Pershing brings together high-touch service, an open digital platform and the BNY Mellon enterprise to deliver a differentiated experience for every client. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. With offices around the world, Pershing has over $2 trillion in assets and millions of investor accounts. Pershing affiliates include Albridge Solutions, Inc. and Lockwood Advisors, Inc., an investment adviser registered in the United States under the Investment Advisers Act of 1940. Additional information is available on pershing.com, or follow us on LinkedIn or Twitter @Pershing.

ABOUT BNY MELLON
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of September 30, 2021, BNY Mellon had $45.3 trillion in assets under custody and/or administration, and $2.3 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

ABOUT OPTIMAL ASSET MANAGEMENT
Optimal Asset Management is an SEC-registered investment advisor specializing in the delivery of institutional-grade investment solutions for all investors. Optimal Asset Management has developed a patented software solution that can be utilized by institutions, wealth managers, and advisors to deliver customized institutional-grade investment solutions for all investors. Optimal Asset Management has expertise in technology and finance focused on designing and delivering Direct Indexing solutions and enabling a more efficient asset management process. For more information, please visit Optimal Asset Management’s website.

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