Wilmington – One of the most significant in M&T Bank’s tenure Wilmington Trust Mutual Investment Trust (CIT), which has about $115 billion in assets, announced Monday that it will sell its business to a private equity firm.
A wealth management and corporate and institutional services division based in Buffalo, NY M&T He will sell the business unit to the Chicago-based Madison Dear colleaguesIt revolves around an independent company with a new brand owned by money associated with the company.
Terms of the deal, including the purchase price, were not disclosed in regulatory filings Monday. Officials said the deal is expected to close in mid-2023, subject to customary closing conditions and regulatory approvals — although the U.S. Securities and Exchange Commission specifically does not regulate CITs, rather the Office of the Comptroller.
CITs are investment vehicles similar to mutual funds held by banks and trusts. Retail investors can’t invest directly like mutual funds, but they can invest in employer-sponsored retirement plans like 401(k)s, pension plans, and insurance companies.
Wilmington Trust’s CIT business under its Institutional Client Services (ICS) division currently manages more than 550 funds in a family of approximately 45 sub-managers, including AllianceBernstein, BlackRock, Franklin Templeton, MetLife, Neuberger Berman and Raymond James, among others. . They have assets under management It is said to have increased by over 200%. In the last three years he has increased his relations.
“CIT’s portfolio has grown significantly since M&T Bank acquired Wilmington Trust in 2011,” said Jennifer Warren, Wilmington Trust’s senior executive vice president and head of ICS, announcing the sale Monday. “We believe this is a natural next step in the evolution of the business and will help CIT’s services and offerings continue to evolve to meet the investment needs of current and future clients. This transaction will also focus our ICS business as ICS continues to execute its vision of becoming a global leader in institutional trust services.” It allows them to grow on their customers and further improve their products and services.
The deal is said to affect about 60 employees. While it has a large Wilmington workforce, Wilmington Trust also has offices throughout the US and in Dublin, Ireland.
Leading the yet-to-be-named new company under MDP ownership will be Rob Barnett, current Wilmington Trust executive vice president, currently based in the Boston area, but another local dimension will be involved. Bill FarrellThe recently retired president and CEO of Wilmington Trust will serve as chairman.
“The CIT business is an industry leader, well-respected and recognized for its track record of successful innovation. “This transaction will help drive the continued growth of our business, our people and our customers going forward,” Barnett said in a statement. “MDP has extensive experience in financial services and will add significant value to our newly formed company. We are excited about this next phase and will continue to provide our strong client-centric services to the retirement market with the significant resources and expertise that the MDP team brings.”
MDP, 30, which has raised more than $28 billion in capital, previously focused on acquiring and managing financial services businesses including EVO Payments, Navacord, NFP and The Ardonagh Group.
According to the executives, “MDP’s experience in expanding and growing businesses in the financial services industry will enable Wilmington Trust’s CIT business to further strengthen and expand its trust and administrative services customer relationships through product capabilities, technology solutions (including the recently launched BoardingPass platform). ), and strategic acquisition opportunities.
Vahe Dombalagin added, “As clients increasingly seek new and customized pension fund solutions, Wilmington Trust’s CIT business as an independent company will be well-positioned to expand new and existing relationships. , managing director and co-head of MDP’s finance and marketing services group, in a statement. “We look forward to working with the Wilmington Trust CIT team to execute a growth strategy that will strengthen the business’s leadership position in the competitive market for third-party trustee and administrative services.”
Wilmington Trust was purchased by M&T in 2011 after the once-revered local bank collapsed, while the growing regional New York bank retained its local trademark of its wealth management platform. Since then, Wilmington Trust has continued to be one of M&T’s most important assets in Delaware, with international and institutional investments.