Bank of New York agreed to take control of junk bond fund manager Alcentra Group.

Terms weren't disclosed, but Bank of New York said it would take 80% of Alcentra in a deal due to close by year-end.

Bank of New York said Alcentra manages 15 investment funds from London and Los Angeles with over $6.2 billion of assets under management. Ivy Asset Management, acquired by Bank of New York in 2000, now has more than $15 billion in assets under management.

"The acquisition of Alcentra will further strengthen our position in alternative investments, leveraging the significant success we've had with Ivy Asset Management, our fund of hedge funds manager," said CEO Thomas A. Renyi. "Sub-investment grade debt fund management and structured credit are highly attractive, fast-growing market segments, and Alcentra has developed a significant profile in these areas."

The Alcentra management team, led by founders Stephen Bruce, Christopher Damico and David Forbes-Nixon, will retain a 20% shareholder interest in the company.

Bank of New York was set to open Tuesday at $29.60.

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