- U.S. Bank will acquire Philadelphia-based PFM Asset Management for an undisclosed sum in a deal expected to close in the fourth quarter, the bank announced Thursday.
- The acquisition would boost U.S. Bank’s capacity to provide asset management advice to local governments.
- About 37% of tie-ups made in the banking space this year have involved nonbank companies, including fintechs, insurers and asset management firms, financial services company Raymond James estimated, according to American Banker. That’s up from 26% in 2019, the company found.
The PFM Asset Management deal is at least the second over the past seven months meant to bolster U.S. Bank’s noninterest income. The Minneapolis-based bank in late December agreed to buy MUFG Union Bank's debt servicing and securities custody portfolio, which had about $320 billion in assets under management.
"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, the head of U.S. Bancorp Asset Management, said in a Thursday press release. "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 will continue to operate as a separate business after the deal closes, but its leadership will change. Dan Hartman, the executive now in charge of PFM’s financial advisory practice, will become its president and CEO.
Marty Margolis, the executive now holding PFM’s chief executive role, said the sale "combines the resources of two organizations who recognize the importance of providing clients with exemplary customer service."
"We’re also very pleased that U.S. Bank aligns with our fundamental belief in creating a diverse, inclusive and ethical culture," Margolis said.