Ivy Asset’s Simon Leaves as Firm Overhauls Ranks

Updated Nov.17, 2016 12:01 a.m. ET

The CEO of New York-based Ivy Asset Management, has stepped down, ending his involvement in the firm founded 25 years ago.

Sean Simon is departing amid a round of restructuring that will see the firm integrated more closely with its parent, BNY Mellon Asset Management.

He is leaving the firm according to a statement from BNY Mellon Asset Management, he will be succeeded by Larry Morgenthal, Ivy’s COO.

Ivy has seen quite the fall in assets under management in the past couple years, dropping from $14 billion in 2007 to $5 billion at the end of December 2009, according to a person close to the company. Many firms have suffered from the falling markets and client redemptions.

Mr. Simon ended up taking control of the firm a year ago, only several years after as co-president alongside Michael Singer. His father Lawrence then sold the company to BNY Mellon in 2000.

Ivy is under “strategic review” by its parent company “to determine how best to position its various products, skills and capabilities going forward.”

BNY Mellon said Ivy will join with Mellon Global Alternative Investments and EACM Advisors. They will be reporting directly to Phil Maisano who is head of alternative investments. BNY Mellon said the move will be creating a hedge fund of funds group with over $8 billion in assets under management.

EACM is also undergoing some changes. The firm’s chief executive Bill Crerend will become chairman and will continue to report to Mr. Maisano. The assets of Mellon Global Alternative Investments will be transferred to EACM’s control.

Mr. Maisano said: “By aligning the [funds of hedge funds] group under one leadership team we will be able to finally enhance our ability to innovate and at the same time further strengthen our businesses.”