U.S. Bank entered into a definitive agreement to purchase PFM Asset Management under its subsidiary, U.S. Bancorp Asset Management. PFM Asset Management will continue to operate as a separate entity. The agreement was signed on July 7 and is expected to close in Q4/21, subject to regulatory approval and satisfaction of customary closing conditions. Financial terms were not disclosed.
PFM Asset Management and U.S. Bancorp Asset Management had combined assets under management and assets under administration of more than $325 billion on March 31, 2021.
“PFM Asset Management brings a wide array of client relationships and product offerings, including local government investment pools, outsourced chief investment officer services and separately managed accounts in both fixed income and multi-asset class strategies,” Eric Thole, head of U.S. Bancorp Asset Management, said. “These services complement U.S. Bank’s current book of business, and we’re thrilled to have the opportunity to increase our presence nationally and solidify U.S. Bank’s position as a leading provider of investment solutions.
“PFM Asset Management has a great reputation in the public space, and that’s a testament to its talent. U.S. Bank is known for working with clients one-on-one to understand their unique needs and delivering customized, proactive solutions to help them meet their objectives. We’re excited to put the variety of resources offered by U.S. Bank to work for our new colleagues and clients.”
“This sale combines the resources of two organizations who recognize the importance of providing clients with exemplary customer service; our commitment to clients will remain a priority throughout the transition,” Marty Margolis, head of PFM Asset Management, said. “We’re also very pleased that U.S. Bank aligns with our fundamental belief in creating a diverse, inclusive and ethical culture.”
PFM Asset Management’s financial advisory business is not part of this acquisition and will continue to operate independently as a financial advisor in terms of transactions and par amount. For the year ended Dec. 31, 2020, PFM Asset Management advised on 995 overall transactions totaling more than $69.7 billion in par amount, according to Ipreo.
U.S. Bancorp Asset Management is part of U.S. Bank’s wealth management and investment services division, which has more than $8.6 trillion in assets under custody and administration and $244 billion in assets under management globally. In addition to offering asset management products and services, it also offers global corporate trust and custody services, alternative investment services, fund custody and administration services and wealth management services.
Piper Sandler served as strategic and financial advisor and Dechert served as legal counsel to PFM Asset Management. McCarter & English served as legal counsel to PFM Asset Management’s financial advisory business. Jones Day served as legal counsel to U.S. Bank.