NU Online News Service, Jan. 12, 2004, 12:20 p.m. EST – WSFS Financial Corp., Wilmington, Del., the parent company of Wilmington Savings Fund Society F.S.B., says it is in the market for midsize investment advisory firms.[@@]
WSFS has started its investment advisory effort by forming a new subsidiary, Montchanin Capital Management, that has agreed to acquire control over Cypress Capital Management, Wilmington, a firm that manages about $350 million in assets for wealthy individuals.
Montchanin is buying a majority stake in Cypress Capital for $1.2 million. Montchanin will buy the rest of Cypress Capital over 3 years at a price based on Cypress Capital’s performance, WSFS says.
Richard Arvedlund, president of Cypress Capital, will continue to run the firm after Montchanin takes it over, WSFS says.
WSFS has hired Charles Burton to be the chief executive officer of the new Montchanin unit. Burton, who previously was the managing partner at Philadelphia Ventures Inc., Philadelphia, a venture capital firm, will own a minority stake in Montchanin.