Two independent money management firms have been sold in two unrelated transactions.
Stifel Financial Corp., a St. Louis holding company for brokerage firm Stifel Nicolaus & Co. Inc., paid an undisclosed amount for Todd Investment Advisors, a manager of about $2 billion. Todd, based in Louisville, Ky., will remain independent, with management remaining in place.
CoreStates Financial Corp., a bank based in Philadelphia, agreed to pay $55 million plus future incentive payments for Rittenhouse Financial Services Inc., a $5.8 billion money manager. Of Rittenhouse's assets, $3.3 billion is managed through broker-sponsored wrap fee programs.
Stifel already owns wealthy-individual manager Pin Oak Capital Ltd., New York, and may be looking to buy more. "Making additional acquisitions of asset management companies is an essential part of (Stifel's) long-term growth strategy," a spokesman said.
CoreStates officials said the Rittenhouse purchase allows the banking concern to further its goal of achieving greater fee-based revenue while expanding to additional customers. Rittenhouse will be an independent subsidiary of CoreStates, as is CoreStates Investment Advisors, Philadelphia, which manages about $9 billion. A CoreStates spokesman declined to comment on whether the bank is looking to buy additional money managers.
The CoreStates purchase is subject to regulatory approval.