Capital One Financial is buying the health care investment bank TripleTree in an effort to tap into the sector’s ongoing merger boom.
The deal is part of Capital One’s efforts to continue to expand its commercial bank, which acquired General Electric’s health care lending business in 2015.
Darren Alcus, who heads corporate banking at McLean, Virginia-based Capital One, said the deal was a “natural opportunity” for the $423 billion-asset bank. It will give TripleTree’s clients access to Capital One’s services for middle-market companies and help Capital One expand its relationships in the health care industry, he said.
“It's an area that we think is dynamic, it's complex," Alcus, who joined Capital One from GE Capital, said in an interview. "It’s one where we think we can provide valuable financial solutions to that client base."
The two companies did not disclose terms of the deal, which is pending customary closing conditions. TripleTree, which is based in Minneapolis but also has offices in New York, will continue to be led by its current investment banking head, Justin Roth.
TT Capital Partners, a TripleTree sister company that invests in health care firms, will remain a separate company and is not part of the acquisition.
The deal is expected to close this year. The law firm Arnold & Porter Kaye Scholer advised Capital One on the deal, while Kirkland & Ellis advised TripleTree on legal matters and Broadhaven Capital Partners was its financial advisor.
