Massachusetts Mutual Life Insurance agreed to purchase record-keeper and investment manager First Mercantile Trust from SunTrust Banks, confirmed MassMutual spokesman Mark Cybulski. Terms of the deal were not disclosed. The purchase, expected to close early in the second quarter pending regulatory approval, would add $5 billion in assets under management to MassMutuals existing $40 billion retirement plan business.
First Mercantile has more than 3,100 retirement plan clients with a total of about 140,000 participants, and serves as trustee and fiduciary to more than 180 collective trusts. First Mercantile President Alan Dunaway and COO James Pratt will continue to oversee daily operations. The company will retain its name.