US Bank is to purchase PFM Asset Management via its subsidiary, US Bancorp Asset Management. PFM Asset Management will continue to operate as a separate entity. PFM Asset Management and US Bancorp Asset Management had combined assets under management and assets under administration of more than USD325 billion on 31 March, 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,” says Eric Thole, head of US Bancorp Asset Management. “These services complement US Bank’s current book of business and we’re thrilled to have the opportunity to increase our presence nationally and solidify US 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. US 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 US Bank to work for our new colleagues and clients.”
Marty Margolis, head of PFM Asset Management, says: “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. We’re also very pleased that US Bank aligns with our fundamental belief in creating a diverse, inclusive and ethical culture.”
PFM’s financial advisory business is not part of this acquisition and will continue to operate independently as the nation’s leading independent financial advisor in terms of transactions and par amount. For the year ended 31 December, 2020, PFM advised on 995 overall transactions totalling more than USD69.7 billion in par amount, according to Ipreo.
“PFM will continue to provide outstanding financial advisory and consulting services to state and local governments and the non-profit sector,” says Dan Hartman, who currently leads PFM’s financial advisory practice and will lead PFM as its president and CEO after closing.
US Bancorp Asset Management is part of US Bank’s Wealth Management and Investment Services division, which has more than USD8.6 trillion in assets under custody and administration and USD244 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, fund custody and administration services, and wealth management services.
The deal was signed on 7 July, 2021 and is expected to close in fourth quarter 2021, subject to regulatory approval and satisfaction of customary closing conditions. Financial terms were not disclosed.
Piper Sandler & Co. served as strategic and financial advisor, and Dechert LLP served as legal counsel to PFM. McCarter & English served as legal counsel to PFM’s financial advisory business. Jones Day served as legal counsel to US Bank.
