A wholly-owned subsidiary of M&T Bank Corporation (“M&T”) (NYSE: MTB), Wilmington Trust, N.A. (“Wilmington Trust”), a market leader in wealth management and corporate and institutional services, today announced a deal with Madison Dearborn Partners, LLC (“MDP”), a renowned Chicago-based private equity firm, under which funds connected to MDP will purchase Wilmington Trust’s Collective Investment Trust (“CIT”) business. After the deal is complete, the CIT business will become a separate entity with a new name controlled by funds associated with MDP.
Since M&T Bank bought Wilmington Trust in 2011, the CIT portfolio has experienced extraordinary growth, according to Jennifer Warren, Senior Executive Vice President and Head of ICS. We think that this is the logical next stage in the company’s development and that it will ensure that CIT’s services and offers continue to advance in ways that current and prospective clients will need in order to meet their investing needs. Additionally, this purchase will help our surviving ICS businesses focus more intently on clients and improve their products.
An industry leader in providing third-party trustee and administrative services to asset managers and the employer-sponsored retirement market, the CIT business is a subsidiary of Wilmington Trust’s Institutional Client Services (“ICS”) division. The company manages around $115 billion in CIT assets for over 550 funds across a family of about 45 subadvisors, including AllianceBernstein, BlackRock, Franklin Templeton, MetLife, Neuberger Berman, and Raymond James. The company has consistently increased revenue year over year.
“The CIT company is a leader in its field, esteemed, and renowned for its record of successful invention. This deal will contribute to our company’s, employees’, and clients’ long-term growth “said Rob Barnett, Wilmington Trust’s executive vice president, who will also lead the independent business. “MDP, who has a wealth of knowledge in the financial services industry, will be a valuable addition to our newly created business. We are enthusiastic about the upcoming chapter and will keep providing the retirement market with our great customer-centric services while utilising the significant resources and knowledge the MDP team will contribute.”
Vahe Dombalagian, Managing Director and Co-Head of MDP’s Financial and Transaction Services team, said, “We are excited to partner with Wilmington Trust’s leading CIT team and leverage our industry knowledge to help the business’s next chapter in the big and expanding CIT sector. “The Wilmington Trust CIT business will be well-positioned as a separate firm to build new and current relationships with an emphasis on aiding plan sponsors in navigating difficult financial and regulatory hurdles as clients seek more innovative and customised retirement fund solutions. We are forward to collaborate with the Wilmington Trust CIT team to implement a growth plan that will enhance the company’s position as a market leader in the cutthroat field of third-party trustee and administrative services.”
MDP has a proven track record of making profitable investments in companies that provide financial services, such as EVO Payments, Navacord, NFP, and The Ardonagh Group. Through increased investment in product capabilities, technology solutions (including the recently launched BoardingPass platform), and strategic acquisition opportunities, Wilmington Trust’s CIT business will be able to deepen and expand its trustee and administrative services customer relationships thanks to MDP’s experience scaling and growing businesses in the financial services sector.
The deal is subject to regulatory clearances and usual closing conditions, and it is anticipated to close no later than mid-2023. M&T Bank has Debevoise & Plimpton as its legal counsel and Raymond James as its financial advisor. MDP is being advised financially by UBS Investment Bank and J.P. Morgan Securities LLC, while it is receiving legal advice from Latham & Watkins LLP and Eversheds Sutherland (US) LLP.
- Wilmington Trust at M&T Bank consents to selling its CIT business to Madison Dearborn Partners
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