Bridgewater to outsource back office work
Westport-based Bridgewater Associates, the world's largest hedge fund, plans to outsource its back office work and 91 employees to the Bank of New York Mellon Corp.
"Bridgewater is transitioning certain back office functions to a third-party partner," said Alexei Nabarro, a Bridgewater spokesman, in an email. "In conjunction with that transition, 91 employees will now be employed by the outsource partner, but retain their jobs in Westport."
Bridgewater's mass layoff notice named BNY Mellon as the acquiring company, though the notice says the final agreements have not been signed, but the business decisions have been made on the matter.
According to the notice, BNY will be picking up a team of software developers and architects, risk and business analysts and various administrators and accountants for portfolios who work out of an office at 355 Riverside Ave., the opposite side of town from the headquarters at One Glendinning Place. The filing said Bridgewater is trying to fill 18 open divisions in the group and any who are hired will be offered jobs with BNY Mellon after the transfer.
BNY Mellon was not immediately available to comment on the deal.
Started in 1975 by Dalio, Bridgewater, with $122 billion invested around the globe is considered the world's largest hedge fund. The fund moved to Connecticut in 1981.
This would not be the first time a hedge fund monetized its back office functions and sold them to another financial firm.
In 2006, Greenwich-based Paloma Partners Management Co. sold its back and middle-office operations division to JP Morgan Hedge Fund services for an undisclosed amount.
Under the deal, according to JP Morgan press releases and quarterly reports, the two businesses "entered into a multiyear contract under which JPMorgan Chase provided daily operational services to Paloma. The 65 Paloma workers remained in Greenwich working in the same building, but became employees of JP Morgan.