Wilmington Trust, a wholly owned subsidiary of M&T Bank Corp., entered into an agreement with Madison Dearborn Partners under which funds affiliated with the firm will acquire Wilmington Trust's collective investment trust business, according to a Monday news release.
A spokesman for M&T Bank and Wilmington Trust said by email that terms of the transaction were not disclosed.
At closing, the CIT business will become an independent company with a new brand name owned by funds affiliated with Madison Dearborn Partners, a Chicago-based private equity firm, the release noted.
The proposed transaction is expected to close "no later than mid-2023," the release added.
Robert Barnett, currently executive vice president and head of intermediary sales distribution at Wilmington Trust, will serve as the independent company's CEO.
The CIT business, which is part of Wilmington Trust's institutional client services division, is a provider of third-party trustee and administrative services to asset managers and the employer-sponsored retirement market. The CIT business currently manages about $115 billion in CIT assets for more than 550 funds across a family of about 45 subadvisers, including AllianceBernstein, BlackRock, Franklin Templeton, MetLife, Neuberger Berman and Raymond James, the release added.
Madison Dearborn Partners was founded in 1992 and has raised eight funds with aggregate capital of approximately $28 billion, and has completed investments in more than 150 companies.
