The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

BNY selling business to Franklin Templeton

Bank of New York Mellon has agreed to sell BNY Alcentra Group Holdings to Franklin Templeton.


The $440 billion-asset Bank of New York Mellon disclosed in a regulatory filing Tuesday that Franklin Templeton will pay $350 million in cash at closing, and up to $350 million in contingent consideration, for the business. 

The deal is expected to close in the first quarter of 2023. 

Franklin Templeton has also committed to buy all seed capital investments from the Bank of New York Mellon tied to Alcentra which, as of March 31, were valued at about $305 million. Those investments will be valued at the time of close to determine the final purchase amount. 

Bank of New York Mellon said that, at closing, the sale should increase its common equity Tier 1 capital by about $500 million.

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