U.S. Trust Corp. has acquired an investment firm that specializes in private equity transactions.
Strategic Trading Corp. of New York became a division of the banking company's principal subsidiary, U.S. Trust Company of New York, the bank announced last week. The cost was not disclosed.
Since its establishment in 1992, Strategic Trading has had a joint marketing arrangement with the subsidiary. The principals of Strategic Trading, Robert Y. Garrett 4th and Jay F. Luby, were named managing directors of U.S. Trust.
Strategic Trading acts as an agent in the sale of formerly restricted stock. Its core clients are venture capitalists who own such stock in newly public companies.
U.S. Trust opted for the acquisition to eliminate conflicts over client confidentiality and complications between computer systems, said John M. Deignan, head of operations and support services.
The division plans to open an office in the Silicon Valley. U.S. Trust manages more than $65 billion of assets for wealthy individuals and families as well as institutional investors.