Mellon Financial today announced that it agreed to buy the 70% of Pareto Partners it does not already own; 40% is now held by Pareto employees and 30% by XL Capital Ltd. Pareto's $35 billion currency business will remain a stand-alone unit, and its $3 billion fixed-income business will be merged into Standish Mellon.
Mitchell Harris, Pareto CEO, will be CEO of Standish Mellon, as reported in today's P&I People. He succeeds William Adam, who will become chairman until he retires at the end of the year. Ted Ladd, current Standish Mellon chairman, becomes chairman emeritus.
Mellon also announced that Pareto will sell its core-plus and high-yield fixed income asset management business, with roughly $3 billion under management, to MacKay Shields. The business will be merged into MacKay Shields. Dan Roberts, CIO and head of Pareto's high-yield portfolio management team, will become senior managing director of MacKay Shields. Ronald Layard-Liesching, Pareto's chief research officer and head of currency strategies, will become CIO but retain his previous duties.
The terms for the deals were not disclosed.
