BRIDGEPORT, Conn., July 21, 2016 /PRNewswire/
-- People's United Bank, N.A. announced today that its
subsidiary, People's Securities, Inc., has entered into a
definitive agreement to acquire Gerstein
Fisher, a $3 billion,
New York City-based investment
management firm serving individuals and families, institutions, and
third-party platforms. The transaction is expected to bring
People's United Wealth Management's total assets under
administration to nearly $20 billion,
of which approximately $8 billion is
under discretionary management.
"Gerstein Fisher's well-known
quantitative investment approach and scalable technology-enabled
platform will build upon the excellent range of investment
solutions offered by People's United," said Jack Barnes, President and Chief Executive
Officer. "The transaction supports recent strategic investments in
our fee income businesses and strengthens our New York franchise. We are extremely pleased
to welcome this respected firm to the People's Securities and
Wealth Management teams."
Founded in 1993 and featured in Barron's "Top 100 Financial
Advisors" list for six consecutive years, Gerstein Fisher is one of the country's largest
independent boutique investment firms. Gerstein Fisher manages assets using a
quantitative Multi-Factor® approach, which structures portfolios to
overweight the factors that leading-edge academic research has
identified as having the potential to deliver enhanced returns.
"Gerstein Fisher's client focus,
quantitative portfolio management and well-rated mutual funds
complement People's United's offerings and expertise," said Galan
Daukas, Senior Executive Vice President, People's United Wealth
Management. "In addition, our partnership will generate excellent
opportunities for shared growth throughout our collective
geographic footprint."
Gerstein Fisher's Founder and
CIO, Gregg S. Fisher, will join
People's United as Head of Quantitative Research and Portfolio
Strategy. "We look forward to bringing the firm's pioneering
Multi-Factor investment approach, as well as the guidance of
Gregg Fisher, to our current and
future clients," Daukas continued.
"We're very excited to join forces with People's United, as both
companies share similar cultures, outstanding client relationships
and strong investment performance," said Fisher. "We believe that
our investment strategies, combined with People's United's large
distribution network, will allow us to help more people invest
smartly to achieve their goals than Gerstein Fisher could have on a standalone
basis."
The transaction is expected to close during the fourth quarter
of 2016, subject to customary approvals and consents, including the
consent of Gerstein Fisher clients.
People's United expects the transaction to be modestly accretive to
earnings in 2017 with an IRR of over 15%. The transaction contains
a portion of contingent consideration based on the achievement of
revenue growth targets.
Berkshire Capital Securities LLC served as financial advisor to
People's United. Silver Lane Advisors LLC served as financial
advisor to Gerstein Fisher.
For information about People's Securities, Inc., read
more at peoples.com.
About Gerstein Fisher
Gerstein Fisher is an investment
management firm headquartered in New York
City. Founded in 1993, the firm manages assets using a
quantitative, Multi-Factor® approach grounded in economic theory
and time-tested academic research. Drawing on a deep understanding
of both market dynamics and investor behavior, Gerstein Fisher has more than two decades of
experience creating innovative solutions for investors. For more
information, please visit www.GersteinFisher.com.
About People's United Bank
People's United Bank, N.A. is a subsidiary of People's United
Financial, Inc. (NASDAQ: PBCT), a diversified financial services
company with over $40 billion in
assets. People's United Bank, founded in 1842, is a premier,
community-based, regional bank in the Northeast offering commercial
and retail banking, as well as wealth management services through a
network of approximately 400 retail locations in Connecticut, New
York, Massachusetts,
Vermont, New Hampshire and Maine.
People's United Bank. "What know-how can
do." ®
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SOURCE People's United Bank, N.A.