U.S. Bank Acquires PFM’s Asset Management Business
July 08 2021 - 2:00PM
Business Wire
U.S. Bank announced today that it has entered into a definitive
agreement to purchase PFM Asset Management LLC under its
subsidiary, U.S. Bancorp Asset Management. PFM Asset Management
will continue to operate as a separate entity. 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,” said Eric Thole, head of U.S. Bancorp Asset
Management. “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.”
Thole added, “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.”
Marty Margolis, head of PFM Asset Management, said, “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 U.S. 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 Dec. 31, 2020, PFM
advised on 995 overall transactions totaling more than $69.7
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,” said Dan Hartman, who currently leads PFM’s
financial advisory practice and will lead PFM as its president and
CEO after closing.
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, fund custody and administration services, and wealth
management services.
The deal was signed on July 7, 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 U.S. Bank.
About U.S. Bancorp Asset Management
U.S. Bancorp Asset Management’s core strength and focus is
managing investment grade fixed income strategies for institutional
clients. A registered investment adviser, it has been providing
investment grade fixed income investment solutions since 1982. With
more than $160 billion in assets under management as of March 31,
2021, U.S. Bancorp Asset Management is a resource for institutional
clients including corporations, healthcare organizations, higher
education, public entities and nonprofits. For more information,
visit usbancorpassetmanagement.com.
About U.S. Bank
U.S. Bancorp, with nearly 70,000 employees and $553 billion in
assets as of March 31, 2021, is the parent company of U.S. Bank
National Association. The Minneapolis-based company serves millions
of customers locally, nationally and globally through a diversified
mix of businesses: Consumer and Business Banking; Payment Services;
Corporate & Commercial Banking; and Wealth Management and
Investment Services. The company has been recognized for its
approach to digital innovation, social responsibility and customer
service, including being named one of the 2021 World’s Most Ethical
Companies and Fortune’s most admired superregional bank. Learn more
at usbank.com/about.
About PFM
At PFM, over 600 employees – asset managers (with $123 billion
in assets under management and $41.2 billion in assets under
administration as of March 31, 2021), financial advisors and
consultants – partner with clients in every region of the country
to transform their world. PFM combines superior financial advice,
disciplined management and ingenuity to build, power, move and
educate. PFM is the marketing name for a group of affiliated
companies providing a range of services. All services are provided
through separate agreements with each company. For more information
regarding PFM’s services or entities, please visit pfm.com.
U.S. Bancorp Asset Management, Inc. is a registered investment
adviser and subsidiary of U.S. Bank National Association. U.S. Bank
National Association is a separate entity and wholly owned
subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and
does not guarantee the products, services, or performance of U.S.
Bancorp Asset Management, Inc.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
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version on businesswire.com: https://www.businesswire.com/news/home/20210708005676/en/
Kimberly Mikrot, U.S. Bank Public Affairs & Communications
kimberly.mikrot@usbank.com | 612.206.2553
Michael Harris, PFM Asset Management LLC harrism@pfm.com |
717.231.6240
David Eichenthal, PFM eichenthald@pfm.com | 423.637.8085
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