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Industry Spotlight > Mergers and Acquisitions

TIAA Agrees to Sell Its Bank

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TIAA has agreed to sell a majority of its banking operation to a group of financial services-focused private equity firms, so it can focus on retirement and asset management services.

TIAA Bank will be sold to Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street Partners and Bayview Asset Management, according to a statement Thursday. TIAA will retain a non-controlling interest in Jacksonville, Florida-based TIAA Bank and will also hold onto to its trust business.

“As we refocus on retirement, we have decided now is the appropriate time for TIAA Bank to begin a new chapter under new ownership,” David Nason, TIAA’s chief operating officer, said in a statement.

The deal is striking because private equity firms rarely acquire U.S. banks these days, after pushing aggressively into the space following the financial crisis.

New York-based Warburg Pincus has deep experience in the sector, having backed firms  including Webster Financial Corp. and Sterling Financial Corp. Stone Point’s investments in the space have included TriState Capital Holdings Inc.

(Image: AP)

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