The transaction creates a solid foundation to support CIT’s continued growth and expanded services and offers
CHICAGO and WILMINGTON, Del., December 19, 2022 /PRNewswire/ — Wilmington Trust, NA (“Wilmington Trust”), a leader in wealth management and corporate and institutional services and a wholly owned subsidiary of M&T Bank Corporation (“M&T”) (NYSE: MTB), today announced an agreement with Madison Dearborn Partners, LLC (“MDP”), a leading private equity firm based in Chicago, under which MDP-affiliated funds will acquire the collective investment trust (“CIT”) business of Wilmington Trust. Upon completion of the transaction, the CIT business will become an independent company with a new brand owned by MDP-affiliated funds.
The CIT business, part of Wilmington Trust’s Institutional Client Services (“ICS”) division, is a leading provider of third-party fiduciary and administrative services to asset managers and the public-sponsored pension market. ’employer. The company has seen consistent year-over-year revenue growth and currently manages approximately $115 billion in CIT assets for more than 550 funds within a family of approximately 45 sub-advisors, including AllianceBernstein, BlackRock, Franklin TempletonMetLife, Neuberger Berman and Raymond James.
“CIT’s portfolio has grown tremendously since M&T Bank acquired Wilmington Trust in 2011,” said Jennifer Warren, senior executive vice president and head of ICS. “We believe this is the next natural step in the evolution of the business and will help ensure that CIT’s services and offerings continue to grow in the way that current and future customers will need to meet their investment needs. Additionally, this transaction will enable our remaining ICS businesses to focus more on their customers and further optimize their products and services as ICS continues to implement its vision of becoming the global leader. institutional fiduciary services.”
“CIT is an industry leader, highly respected and recognized for its success in innovation. This transaction will help ensure the continued growth of our business, our employees and our customers in the future,” said rob barnet, executive vice president of Wilmington Trust, who will serve as CEO of the independent company. “MDP has extensive experience in financial services and will add significant value to our new company. We are excited about this next chapter and will continue to offer our strong client-centric services to the retirement market with the resources and substantial expertise the MDP team will bring to bear.”
MDP brings a significant track record of successful investments in financial services companies including EVO Payments, Navacord, NFP and The Ardonagh Group. MDP’s experience in scaling and growing businesses in the financial services industry will enable Wilmington Trust’s CIT business to deepen and expand its relationships with trust and administrative services clients through increased investment in product capabilities, technology solutions (including the recently launched BoardingPass platform) and strategic acquisition Opportunities.
“We are excited to work with Wilmington Trust’s leading CIT team and leverage our industry expertise to support the company’s next chapter in the important and growing CIT market,” said Vahe Dombalagian, Managing Director and co-head of MDP’s financial and transactional services team. “As clients increasingly demand innovative and personalized retirement fund solutions, the Wilmington Trust CIT business will be well positioned as an independent firm to expand new and existing relationships with a focus on helping plan sponsors navigate complex retirement and regulatory challenges. We look forward to working with the Wilmington Trust CIT team to execute a growth strategy that strengthens the company’s leadership position in the competitive market for third-party trust and administrative services.”
The transaction is expected to close no later than mid-2023 and is subject to customary closing conditions and regulatory approvals. Raymond James acts as financial advisor to M&T Bank, and Debevoise & Plimpton is its legal advisor. UBS Investment Bank and JP Morgan Securities LLC are acting as financial advisors to MDP, and Latham & Watkins LLP and Eversheds Sutherland (US) LLP are providing legal advice.
About Wilmington Trust
Wilmington Trust, NA provides corporate and institutional services, including institutional trusts, agencies, asset management, pension plan and administrative services for clients around the world who use funding structures in the capital markets. Wilmington Trust provides direct fiduciary, custodial and fiduciary services to pension plans, corporations, foundations, organizations and financial institutions.
Wilmington Trust also provides wealth advisory services with a wide range of personal trust, financial planning, trust, asset management and family office solutions designed to help wealthy individuals and families develop, preserve and transfer their assets.
Wilmington Trust has offices everywhere United States and internationally in London, Paris, Dublinand Frankfurt. For more information, visit www.WilmingtonTrust.com.
About M&T Bank Corporation
M&T Bank Corporation is a financial holding company headquartered in Buffalo, New York. M&T’s principal banking subsidiary, M&T Bank, provides banking products and services in 12 states in the northeastern United States, from Maine at Virginia and washington d.c. Trust-related services are provided in certain markets in the United States and abroad by affiliates of M&T’s Wilmington Trust and M&T Bank. For more information about M&T Bank, visit www.mtb.com.
About Madison Dearborn Partners, LLC
Madison Dearborn Partners, LLC (“MDP”) is a leading private equity investment firm based in Chicago. Since inception of MDP in 1992, the company has raised total capital of more than $28 billion and has made more than 150 investments in the platform. MDP invests in five dedicated verticals, including core industries; commercial and government software and services; financial and transactional services; Health care; and telecommunications, media and technology services. For more information, please visit www.mdcp.com.
About Mutual Funds
Collective Investment Trust Funds (“OPC”) are bank collective investment funds; they are not mutual funds. CITs and their units are exempt from registration under the Investment Company Act of 1940 and the Securities Act of 1933, respectively. The CIT Trustee retains ultimate fiduciary authority over the management and investments made in these CITs. Retail investors cannot invest directly in CITs; CIT participation is limited primarily to qualified defined contribution plans and some state or local public plans and is not available for IRAs, health and welfare plans, and in some cases Keogh plans ( HR 10).
Caution Regarding Forward-Looking Statements
This communication includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as modified. Forward-looking statements are based on current expectations, estimates and projections about M&T’s business, the beliefs of M&T’s management and assumptions made by M&T’s management. Any statement that does not describe historical or current facts is a forward-looking statement, including statements regarding the expected effects of the transaction and M&T’s expected financial results, outlook, targets, objectives and prospects. Forward-looking statements are generally identified by words such as “believe”, “expect”, “anticipate”, “intend”, “target”, “estimate”, “continue”, “positions”, “prospects” or “potential,” by future conditional verbs such as “will”, “would”, “should”, “could” or “may”, or by variations of these words or by similar expressions. statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Accordingly, actual results may differ materially from what is expressed or anticipated in such forward-looking statements. M&T provides further details regarding such risks and uncertainties in its most recent Form 10-K, including in the Risk Factors section of this report, as well as in subsequent filings with the SEC. Forward-looking statements speak only as of the date of their wording, and M&T undertakes no obligation and does not undertake to update any forward-looking statements.
contacts
For Wilmington Trust/M&T Bank:
Patrick Fitzgibbons
M&T Bank
[email protected]
201.208.4462
For CDM:
Chuck Dohrenwend/Jake Yanulis
H/Abernathy Advisors
[email protected]
212.371.5999
SOURCE M&T Bank Corporation
