U.S. Bank deal would double size of asset management unit

U.S. Bancorp has agreed to acquire PFM Asset Management, a deal that would double the size of the Minneapolis company’s advisory unit.

With the acquisition, the amount of assets overseen by U.S. Bancorp Asset Management will go from $160 billion to roughly $325 billion, though PFM would continue to operate as a separate business, U.S. Bank said.

Buying the Philadelphia-based PFM also would increase U.S. Bancorp’s role in providing asset management advice to local governments.

U.S. Bancorp has agreed to pay an undisclosed sum to acquire PFM Asset Management under a deal announced Thursday.


“PFM Asset Management has a great reputation in the public space, and that’s a testament to its talent,” Eric Thole, the head of U.S. Bancorp Asset Management, said in a press release Thursday.

The move is representative of a larger trend in which banks have been prioritizing deals that generate noninterest income, as borrowing rates remain near historic lows.

Nearly 37% of deals so far this year have been for nonbank companies, like fintechs, insurers and asset management firms, compared with 26% for all of 2019, according to estimates from Raymond James.

Marty Margolis, head of PFM Asset Management, said in the release that the $553 billion-asset U.S. Bancorp was an attractive buyer because of its commitment to “creating a diverse, inclusive and ethical culture” for the firm’s government and nonprofit clients.

Financial terms of the deal, which is expected to close in the fourth quarter, were not disclosed.

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