The Bank Slate


TIAA to sell its bank to an investor group

TIAA has agreed to sell TIAA Bank to a group of investors.

The retirement company said in a press release that it expects to close the sale next year. It didn’t disclose the price to be paid for the $36 billion-asset bank.

The sale will allow TIAA to focus on its retirement business and Nuveen, its asset manager. TIAA, which plans to apply for a national trust bank charter, said it will retain a non-controlling ownership stake in the bank. 

The TIAA Trust business would become a TIAA subsidiary.

The new investors – funds managed by Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street and Bayview Asset Management – will own non-controlling interests in the bank. TIAA and Nuveen will have ongoing business relationships with the bank.

“As we refocus on retirement, we have decided now is the appropriate time for TIAA Bank to begin a new chapter under new ownership,” David Nason, TIAA’s chief operating officer, said in the release.

“The changes we’re announcing are in the best interest of TIAA and our retirement clients, and for our bank’s consumer and commercial clients and the incredible TIAA Bank associate team,” Nason added. “TIAA is making this move from a position of strength, and we are confident the bank is well-positioned for future growth and success.”

TIAA Bank’s headquarters and main base of operations will remain in Jacksonville, Fla. The bank will rebrand when the deal closes.

TIAA bought EverBank Financial in June 2017 for $2.5 billion in cash. It rebranded the bank a year later.

J.P. Morgan Securities and Davis Polk & Wardwell advised TIAA. Jefferies, Goldman Sachs and Wachtell Lipton Rosen & Katz advised the investors. Cleary Gottlieb Steen & Hamilton advised Sixth Street, and Simpson Thacher & Bartlett advised Bayview Asset Management.

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