What You Need to Know
- As part of the transaction — which the two firms expect to close next year — Pittsburgh-based TriState will continue to operate as a separately branded firm.
- Raymond James believes the deal should help it diversify its “deposit gathering capabilities and ... provide additional internal FDIC-insured deposit capacity to [its] Private Client Group clients.”
Raymond James Financial is acquiring TriState Capital Holdings in a cash and stock deal valued at roughly $1.1 billion, the firms announced late Wednesday.
“TriState Capital has a terrific, client-centric franchise focused on serving clients with premier private banking, commercial banking and niche investment management products and services,” said Raymond James Chairman and CEO Paul Reilly in a statement.
Overall, TriState has some $12 billion in client assets. Its private banking and middle-market commercial lending businesses have about $10 billion in loans, and its asset management franchise — Chartwell Investment Partners — manages roughly $11 billion in assets, mainly in equity and fixed income strategies.
“As we have followed the firm and management team over the past several years, including as its largest deposit client, we’ve admired its leadership position in offering securities-based lending through a scalable and robust technology platform,” Reilly explained.
Raymond James believes the deal should help it diversify its “deposit gathering capabilities and … provide additional internal FDIC-insured deposit capacity to [its] Private Client Group clients,” according to a press release.
In addition, the acquisition could mean more business for TriState’s commercial-fund finance offerings through potential sales to Raymond James’ investment banking clients, the firms said.
News of the latest deal comes about five months after Raymond James finalized plans to acquire Cebile Capital, a private fund placement agent and secondary market advisor to private equity firms, for an undisclosed sum.