The February 2014 issue of Bank Watch is available now, which features two articles.
The first article, “Second Fairness Opinions” was written by by Jeff Davis.
Given the increase in litigation and greater scrutiny on investment bankers’ contingent pay when issuing a fairness opinion, many boards have hired a second (or third) financial advisor that was not involved in arranging, negotiating and/or financing a transaction to issue a fairness opinion. Doing so will not preclude litigation, but boards that hire an independent financial advisor are taking a step to ensure their actions meet the standards of care, loyalty and good faith that form the basis of the Business Judgment Rule.
The second article details a recent acquisition of an asset management firm by a bank. Tri-State Capital Holdings, Inc. acquired Chartwell Investment Partners, LP on January 7, 2014.
On January 7, 2014 Tri-State Capital Holdings, Inc. (NASDAQ ticker: TSC), the holding company of Pittsburgh-based TriState Capital Bank, entered a definitive asset-purchase agreement to acquire Chartwell Investment Partners, L.P., a Registered Investment Advisor (RIA) in the Philadelphia area with approximately $7.5 billion in assets under management (AUM). Unlike most acquisitions of closely held RIAs, the terms of the deal were disclosed via a conference call and investor presentation; the details of which are outlined in this article.
In addition, two recent transactions are announced. This issue also includes a link to a recent presentation “Bank Acquisitions of Asset Management Firms”.
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The February 2014 issue also contains links to various articles of interest, as well as public market indicators, M&A market indicators, and key indices of the top financial institutions in the U.S., providing insight into financial institution valuation issues.
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