Lunate, a prominent global alternative investment management firm overseeing assets exceeding $50 billion, and BNY Mellon (NYSE:BK), renowned as the world’s largest custodian and a trailblazer in wealth management technology, are joining forces to invest in Alpheya. This new company is set to develop a tailored wealth management technology platform catering to the needs of wealth and asset managers in the Middle East and North Africa (MENA).
Headquartered in the Abu Dhabi Global Market (ADGM), Alpheya will receive a substantial capital commitment of $300 million and is anticipated to commence client services in 2024. BNY Mellon will hold a minority stake in the company.
This fintech venture aims to address the surging demand in the Middle East, with a focus on providing comprehensive digital solutions for wealth and asset managers, private banks, and investment houses. The platform will offer a spectrum of services, encompassing client onboarding, financial planning, portfolio construction, trading and rebalancing, risk management reporting, and analytics. Boasting state-of-the-art security and data architecture, the platform will be intricately designed to meet the specific data privacy and localization requirements of each market within the region.
“We look forward to leveraging our local industry and investment expertise with BNY Mellon’s long history in wealth technology solutions to help wealth managers in the Middle East meet the evolving needs of their clients,” said Seif Fikry, Managing Partner, Lunate. “Not only will this new platform transform wealth capabilities for financial institutions across MENA, it will also strengthen Abu Dhabi’s role as a global hub for wealth and asset management.”
“BNY Mellon is one of the largest wealth management technology providers, and the new company will leverage our deep expertise in providing wealth managers and investors digital tools and solutions for enhancing portfolio management, seamlessly connecting to local and global providers, and harnessing world-leading data management capabilities,” said Akash Shah, Chief Growth Officer, BNY Mellon. “We are proud to invest in an organization which recognizes the need for a locally-developed wealth technology solution, and to support the burgeoning wealth management industry in the region.”
“Wealth franchises today are managing complex technology environments and a multitude of investment options, that are all supported by more data and analytics and increasingly sophisticated risk management practices,” said Roger Rouhana, CEO of Alpheya. “The creation of a wealth technology solution that provides digital tools and software solutions in one integrated platform and is customized for the Middle East, will greatly enhance the ability of regional wealth managers to grow in a scalable and client-centric way.”
To know more about other trending usecases in the US financial services industry, like Generative AI, Open Banking, Buy Now Pay Later (BNPL), explore our other insights.
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