M&T Bank in Buffalo has agreed to sell the collective investment trust business of one of its subsidiaries to Madison Dearborn Partners.
The $198 billion-asset M&T said in a press release that its Wilmington Trust unit expects to complete the sale in mid-2023. The price wasn’t disclosed.
The CIT business provides third-party trustee and administrative services to asset managers and the employer-sponsored retirement market. It manages about $115 billion in assets for more than 550 funds across a family of about 45 subadvisors, including AllianceBernstein, BlackRock, Franklin Templeton, MetLife, Neuberger Berman and Raymond James.
The business will become an independent company with a new name owned by funds affiliated with Madison Dearborn. Rob Barnett, an executive vice president at Wilmington Trust, will become the company’s CEO.
“We believe this is the natural next step in the evolution of the business and will help ensure CIT services and offerings continue to develop in ways that current and future clients will require to meet their investing needs,” Jennifer Warren, head of institutional client services (ICS) at Wilmington Trust, said in the release.
“This transaction will enable our remaining ICS businesses to deepen their focus on clients and further optimize their products and services as ICS continues to execute its vision to become the global leader in institutional trust services,” Warren added.
Raymond James and Debevoise & Plimpton advised M&T. UBS Investment Bank, J.P. Morgan Securities, Latham & Watkins and Eversheds Sutherland (US) advised Madison Dearborn.