Deal with US bank would double size of asset management unit | Payments Source
US Bancorp has agreed to acquire PFM Asset Management, a deal that would double the size of the company’s Minneapolis advisory unit.
With the acquisition, the amount of assets overseen by US Bancorp Asset Management will increase from $ 160 billion to around $ 325 billion, although PFM would continue to operate as a separate company, US Bank said.
The purchase of Philadelphia-based PFM would also increase US Bancorp’s role in providing asset management advice to local governments.
“PFM Asset Management enjoys an excellent reputation in the public arena, and this is testament to its talent,” Eric Thole, head of US Bancorp Asset Management, said in a statement Thursday.
This decision is representative of a broader trend in which banks have prioritized transactions that generate non-interest income, while lending rates remain close to their historic lows.
Almost 37% of transactions so far this year have been for non-bank companies, such as fintechs, insurers and asset management companies, compared to 26% for all of 2019, according to Raymond’s estimates. James.
Marty Margolis, head of PFM Asset Management, said in the statement that the US $ 553 billion Bancorp asset was an attractive buyer because of its commitment to “create a diverse, inclusive and ethical culture” for government and businesses. the company’s nonprofit clients.
Financial terms of the deal, which is expected to be finalized in the fourth quarter, were not disclosed.