Bank of New York Mellon subsidiary Pershing has entered into a definitive agreement to acquire direct indexing provider Optimal Asset Management.
Terms of the deal, announced in a news release Thursday and expected to close by the end of this year, were not disclosed.
The acquisition will form part of Pershing X, a new business unit within Pershing that will design and build "a comprehensive, all-in-one set of advisory capabilities to Pershing's Wealth Solutions clients, including broker dealers, registered investment advisers and trust companies," according to an Oct. 14 news release announcing the new unit.
The acquisition will enable Pershing to offer Optimal Asset Management's direct indexing capabilities within Pershing X, said Jim Crowley, Pershing's CEO, in the latest news release.
That release cites an expected growth in the overall direct indexing market to $1.5 trillion in assets under management by 2025 from $350 billion in 2020 as a motivation in the acquisition and new offering.
Pershing officials could not be immediately reached for further information.