M&T Bank Corporation Announces Sale of Wilmington Trust's Collective Investment Trust Business

Strategic Insights -

Wilmington Trust, a subsidiary of M&T Bank Corporation, has entered into a definitive agreement to sell its Collective Investment Trust (CIT) business to Madison Dearborn Partners, LLC (MDP). The sale is expected to close by mid-2023, subject to customary closing conditions and regulatory approvals. The CIT business has delivered consistent year-over-year revenue growth and currently manages approximately $115 billion in assets for over 550 funds across a family of about 45 subadvisors.

Key Takeaways:

  • The sale of Wilmington Trust's CIT business to MDP is expected to close by mid-2023, subject to customary closing conditions and regulatory approvals.
  • The CIT business has delivered consistent year-over-year revenue growth and currently manages approximately $115 billion in assets for over 550 funds across a family of about 45 subadvisors.
  • MDP has extensive experience in financial services and will add significant value to the newly formed company.
  • Wilmington Trust's CIT business will become an independent company with a new brand name owned by funds affiliated with MDP.
  • The transaction will help ensure continued growth for the CIT business, its people, and clients well into the future.
  • WMTB has appointed a new CEO, Rob Barnett, who will lead the independent company.
  • Raymond James is acting as financial advisor to M&T Bank, and Debevoise & Plimpton is serving as its legal counsel.
  • UBS Investment Bank and J.P. Morgan Securities LLC are acting as financial advisors to MDP, and Latham & Watkins LLP and Eversheds Sutherland (US) LLP are providing legal counsel.

Statistics:

  • The CIT business currently manages approximately $115 billion in assets.
  • The transaction is expected to close by mid-2023.
  • Wilmington Trust's CIT business has delivered consistent year-over year revenue growth.
  • Over 550 funds across a family of about 45 subadvisors have assets managed by the CIT business.

Sources:

  • "M&T Bank Corporation Announces Sale of Wilmington Trust's Collective Investment Trust Business," Wilmington Trust, 19 Dec 2022
  • "M&T Announces Agreement to Sell Wilmington Trust's CIT Business," M&T Bank Corporation, 19 Dec 2022
  • "Wilmington Trust Announces Sale of CIT Business," Business Wire, 19 Dec 2022