U.S. Bank entered into a definitive agreement to acquire PFM Asset Management under U.S. Bank’s U.S. Bancorp Asset Management subsidiary, the companies said Monday.
Once completed, PFM Asset Management will continue to operate as a separate entity, they said in a joint announcement. The deal was signed on July 7 and is expected to close in the fourth quarter, subject to regulatory approval and satisfaction of customary closing conditions, according to the companies.
“U.S. Bank and PFM began conversations in early 2021,” a U.S. Bank spokesperson told ThinkAdvisor. Financial terms were not disclosed.
PFM’s financial advisory business is not part of the acquisition and will continue to operate independently, the companies said. For the year ended Dec. 31, PFM advised on 995 overall transactions totaling more than $69.7 billion in par amount, they said, citing Ipreo data.
PFM Asset Management and U.S. Bancorp Asset Management had combined assets under management and assets under administration of more than $325 billion as of March 31, the firms said.
U.S. Bancorp had almost 70,000 employees and $553 billion in assets as of March 31, while PFM had over 600 employees, including asset managers (with $123 billion in AUM and $41.2 billion in AUA as of March 31), financial advisors and consultants, they said.
“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,” according to Eric Thole, head of U.S. Bancorp Asset Management.
“These services complement U.S. Bank’s current book of business and will enable the company to “increase our presence nationally,” he said in a statement.
PFM’s “commitment to clients will remain a priority throughout the transition,” according to Marty Margolis, head of PFM Asset Management.
“PFM will continue to provide outstanding financial advisory and consulting services to state and local governments and the non-profit sector,” according to Dan Hartman, who currently heads PFM’s financial advisory practice and will lead PFM as its president and CEO after closing.
Piper Sandler & Co. served as strategic and financial advisor, while 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.