Page 46 - Investment Advisor - December 2021

BROKER-DEALER BEAT

By Janet Levaux and Jeff Berman

Raymond James to Buy TriState Capital

for $1.1B

Also, Merrill Lynch moves to trailing 12-month advisor comp structure.

aymond James Financial is
acquiring TriState Capital
R Holdings in a cash and stock
deal valued at roughly $1.1 billion, the
firms announced in late October.
“TriState Capital has a terrific, cli-
ent-centric franchise focused on serving
clients with premier private banking,
commercial banking and niche invest-
ment management products and ser-
vices,” said Raymond James Chairman
and CEO Paul Reilly in a statement.
Overall, TriState has some $12 bil-
lion in client assets. Its private banking
and middle-market commercial lend- private fund placement agent and sec- office locations,” the firms said in a
ing businesses have about $10 billion ondary market advisor to private equity press release.
in loans, and its asset management firms, for an undisclosed sum. Chartwell Investment Partners will
franchise — Chartwell Investment In mid-December of 2020, the firm keep its brand and operate as a subsid-
Partners — manages roughly $11 billion said it was buying Financo, a consumer- iary of Raymond James’ Carillon Tower
in assets, mainly in equity and fixed focused boutique investment bank that, Advisers; the combined assets under
income strategies. like Cebile, has offices in London and management of these businesses are
“As we have followed the firm and New York. That deal was announced expected to total $80 billion when the
management team over the past several just a week after Raymond James said deal is completed.
years, including as its largest deposit cli- it planned to purchase retirement plan For its part, Raymond James works
ent, we’ve admired its leadership posi- administrator NWPS. with about 8,400 financial advisors
tion in offering securities-based lending managing some $1.2 trillion in cli-
through a scalable and robust technol- FUTURE PLANS ent assets. Raymond James Bank has
ogy platform,” Reilly explained. As part of the $1.1 billion transaction — assets of roughly $35 billion through
Raymond James believes the deal which the firms expect to close next its work for corporations and Private
should help it diversify its “deposit gath- year — Pittsburgh-based TriState will Client Group customers. Carillon Tower
ering capabilities and … provide addi- continue to operate as a separately Advisers manages retail and institution-
tional internal FDIC-insured deposit branded firm, as well as a stand-alone al fixed income and equity strategies of
capacity to [its] Private Client Group division and independently chartered $69 billion.
clients,” according to a press release. bank subsidiary of St. Petersburg, In the quarter ended June 30, Raymond
In addition, the acquisition could mean Florida-based Raymond James. James had revenues of $2.47 billion, up
more business for TriState’s commercial- Jim Getz will stay on as chairman 35% from a year earlier. Its adjusted net
fund finance offerings through poten- of TriState, while Brian Fetterolf will income (excluding one-time items) rose
tial sales to Raymond James’ investment remain CEO of TriState Capital Bank. 123% from the prior year to $386 million,
banking clients, the firms said. Tim Riddle will continue as CEO of or $2.74 per share. In the third quarter,
News of the latest deal comes about Chartwell Investment Partners. Plus, net earnings were $429 million, up 105%
five months after Raymond James final- about 350 associates are “expected to year over year, while earnings per share
ized plans to acquire Cebile Capital, a remain with the firm in its existing was $2.02, up 102% YOY.

44 INVESTMENT ADVISOR DECEMBER 2021 | ThinkAdvisor.com