The February 2014 issue of Bank Watch is available now, which features two articles.
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”.
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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