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Money Management

BNY Mellon swapping stakes in real estate firm

BNY Mellon Investment Management will exchange a majority interest in real estate manager Amherst Capital Management for a minority interest in Amherst Holdings.

The $58.7 billion Texas Treasury Safekeeping Trust, Austin, holds a minority stake in Amherst Capital and will swap it for a minority stake in Amherst Holdings, said a joint news release from BNY Mellon Investment Management and Amherst Holdings.

Officials from the Texas trust could not be reached for comment.

Amherst Capital Management was created in 2015 as a partnership between Amherst Holdings and BNY Mellon Investment Management, said Stan Neve, a BNY Mellon spokesman. Amherst Capital Management will become a wholly owned subsidiary of Amherst Holdings as part of the deal.

The deal is expected to close within 90 days. Spokesmen Mr. Neve and Tom Johnson for Amherst Holdings declined to provide details about the size of each investor's stake and financial details about the transaction.

Going forward, BNY Mellon Investment Management will drop Amherst Capital Management from its lineup of investment boutiques and will become a distribution partner for Amherst Holding's real estate investment strategies, Mr. Neve said. Amherst Capital's investment capabilities include commercial residential, mortgage-backed securities and single-family equity investment strategies.

Removing Amherst Capital Management as an investment boutique is part of BNY Mellon Investment Management's long-term strategy, first implemented in 2007, to streamline the firm's investment capabilities to focus on firms with scale or specialist active approaches, said CEO Mitchell E. Harris during the firm's March 8 investor day, a transcript showed.

BNY Mellon Investment Management will have nine investment boutiques after the departure of Amherst Capital, down from 27 in 2007.

BNY Mellon Investment Management managed $1.9 trillion as of March 31. Amherst Holdings, including Amherst Capital Management, managed $3.6 billion and had $15 billion under advisement and oversight as of the same date.