Federated Investors to Acquire Mutual Fund Assets from PNC

May 31, 2019

On May 7, 2019, Federated Investors Inc. announced that it had entered into an agreement to acquire certain assets from The PNC Financial Services Group.Pursuant to the terms of the agreement, Federated Investors, Inc. (“Federated Investors”) will acquire certain aspects of the PNC Capital Advisors LLC’s (“PCA”) investment-management business. Approximately $9 billion in assets from three of The PNC Financial Services Group Inc.’s (“PNC”) government and treasury money market funds will be transitioned through mutual fund reorganizations. Approximately $2.7 billion in equity mutual fund assets and $700 million in fixed-income mutual fund assets will be reorganized from 15 PNC funds into ten existing and three new Federated Investors funds. After the deal closes, PCA will manage approximately $21 billion of custom liquidity and fixed-income solutions and PNC’s Institutional Advisory Business will continue to manage $26 billion in outsourced chief investment officer services. PNC’s team responsible for leadership of international equity funds will join Federated Investors and continue to manage the funds. Employees on PNC’s liquidity and taxable fixed-income teams will continue to serve in their current roles with PCA. Federated Investors will pay PNC a total purchase price of $52 million. The transaction is subject to regulatory and board approvals and is expected to close in the fourth quarter of this year. Further terms of the deal were not disclosed.

Federated Investors (NYSE: FII), headquartered in Pittsburgh, is a global investment manager that provides investment management to corporations, government entities, insurance companies, foundations and endowments, banks and broker-dealers. Federated Investors has $494.9 billion in assets under management as of March 31, 2019.

PNC (NYSE: PNC) is a United States financial services institution that provides a full range of lending products and services for corporations and government entities, including corporate banking, real estate finance and asset-based lending, wealth management and asset management.

PCA, an indirect subsidiary of PNC, is an asset management firm that provides domestic and international equity, fixed-income, and tax-exempt strategies to institutional investors. PCA has $54.6 billion in assets under management as of March 31, 2019.

To read the press release: please click here.

 


Categories

Investment Manager M&A, Mutual Fund M&A, Transactions