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Bank holding companies saw a dip in wealth management income in the first three quarters of 2012, a new study says.
March 13 -
BNC, of High Point, N.C., would pay $35 million for First Trust, its fifth deal in the Carolinas in nine months.
June 4
Genworth Financial (GNW), an insurer in Richmond, Va., has agreed to part with its wealth management operations for $412.5 million.
Under the terms of the transaction, announced late Wednesday, two private-equity firms — Aquiline Capital Partners and Genstar Capital — would acquire two Genworth units: Genworth Financial Wealth Management, an investment advisor, and Altegris, a provider of alternative investments that manages roughly $3.3 billion in client assets.
Last year, Aquiline, which counts among its partners Ken Thompson, the former CEO of Wachovia and First Union, led a group of investors who
Genworth Financial Wealth Management provides tools that roughly 6,000 independent financial advisors use to guide investors on how to allocate their investments, a segment of the financial industry that attracts attention from many banks, including JPMorgan Chase (JPM), Bank of America (BAC) and Wells Fargo (WFC). Roughly $20 billion of client assets are managed via the unit, according to Genworth.
Aquiline and Genstar said they would work with executives of the wealth management unit and Altegris to improve the companies' products and technology, expand distribution and reinforce the businesses' infrastructures and capital bases.
The sale had been expected since last year, when Genworth said it would shed units that did not tie directly to its life and mortgage insurance businesses.
Jeff Greenberg, Aquiline's chief executive, praised the companies as "market-leading businesses with strong brands, experienced management teams and high growth potential," according to a press release.
Tony Salweski, a principal at Genstar, added that Genworth Financial Wealth Management and Altegris "are each well-positioned to meet the growing needs of independent financial advisors and increased demand from retail investors for access to alternative products."
The firms said they expect the deal to close in the second half of this year.
Deutsche Bank advised both Aquiline and Genstar on the deal, while Credit Suisse provided debt financing for the acquisition. Aquiline is based in New York, and Genstar is in San Francisco.
