Milestone Venture Partners’ Investee, DPM, Acquired by Mellon

New York, NY, Jan. 20, 2005 – Milestone Venture Partners, a premier early-stage venture capital firm, today announced a Mellon Financial Corporation agreement to acquire its investee, DPM, a Somerset, NJ hedge fund administrator that overseas $30 billion in assets for 91 clients.

            Todd Pietri, Co-Founder of Milestone, said, “The acquisition is significant to investors in our venture fund, MVP II, because it provides an immediate excellent return and a potentially much higher return over time.” Terms of the transaction, which is scheduled to close in March 2005, were not disclosed.

 “Joining Mellon will enable us to better serve the growing number of hedge funds that are coming under the umbrellas of large institutional asset managers,” said Robert M. Aaron, DPM’s CEO, who will become chief executive officer of a new Mellon subsidiary within Mellon’s Asset Servicing group. 

James P. Palermo, Mellon vice chairman and president of Mellon Global Securities Services, called DPM one of the most successful and fastest growing firms in the hedge fund administration arena, with a broad set of capabilities. “This acquisition enables Mellon to meet the needs of clients who increasingly are seeking custodians with hedge fund expertise,” he said.

Palermo noted that Mellon plans to further expand DPM’s operations in Europe to meet growing demands from international hedge fund managers. “It is our intention to establish a hedge fund administration capability in Dublin, where we already have a substantial asset servicing hub,” he said.

Milestone Venture Partners invests in early-stage information-technology companies in the New York metro region, specializing in financial services and healthcare IT.  Current investments, in addition to DPM include CareGain, ExpertPlan, Knovel, Medidata, Navtrak, Octagon, and Ecosystems.

Prior investments by Milestone general partners include Advo, Apple, Idexx, Kronos, Solectron, Staples, Telematics and Veeco Instruments.

For more information, call (212) 223-7400, or write to Milestone Venture Partners, 551 Madison Avenue, 7th Floor, New York, NY 10022.

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