In 2001, Derivatives Portfolio Management, LLC turned to Source Capital, Ltd. to obtain private equity capital to fund its growth and expansion. Despite a difficult capital market environment, Source was able to attract expressions of interest from a range of both active and passive investors including strategic investors, financial services industry specialized funds, and venture capital and private equity funds. This enabled the Company to not only obtain the capital it needed to grow, but to also consider the qualitative value that could possibly be added by various investors.

Using the capital obtained by Source, DPM became widely recognized as a leading provider of outsourced back-office processing and risk reporting services for the global alternative investment community, which includes hedge funds, derivatives portfolios, fund-of-fund programs and commodity pool operators. The relatively new concept of outsourcing such services has gained widespread acceptance during the past few years as there is an increased demand for risk monitoring and transparency for these more sophisticated investment products. Current users of DPM’s services include international banks, institutional investors, fund-of-fund asset allocators, proprietary traders and high net worth family offices.

Part of Source’s original capital raising strategy was to expose the company to certain financial institutions, which Source believed would be potential acquirors if the Company demonstrated success with its growth strategy. One of those institutions was Mellon Financial Corporation, which this year knowing that its owners ultimately wished to sell their interests, approached the Company offering an attractive buyout price.

Since 1982, Source has assisted closely-held companies on matters relating to growth strategy, company capitalization and exit planning for shareholders.