PNC Financial Services Group in Pittsburgh has agreed to sell several segments of its investment management business to refocus that unit on providing outsourced investment services.
Federated Investors, also in Pittsburgh, would buy them for $52 million, the companies said in a news release Tuesday. The deal is expected to close in the fourth quarter.
Under the agreement, the $393 billion-asset PNC would dispose of about $13.9 billion in total investment-management-related assets:
- $9 billion in liquidity assets held in money market funds and other vehicles
- $4.2 billion in equity mutual fund assets
- $700 million in fixed-income mutual fund assets
All of those assets are now managed within the company's PNC Capital Advisors subsidiary.
“PNC’s institutional asset management business will now be focused on its core strength: providing comprehensive outsourced chief investment officer services and custom investment solutions,” Michael Lyons, head of corporate and institutional banking and the asset management group, said in the release.
A six-person team of portfolio managers and analysts based in Cleveland would switch from PNC to Federated.
Federated has about $485 billion in assets under management in equity, fixed-income and money market mutual funds.
