Federated Investors Inc. agreed to acquire $17 billion in money market assets from SunTrust Banks Inc. as the regional bank completed a review of what to do with the operation.
Federated, a Pittsburgh asset manager, has been moving to diversify amid expected tightening in money market fund regulation.
Under the deal, SunTrust, of Atlanta, will turn over assets in nine money market funds managed by its Ridgeworth Capital Management business to six Federated funds with similar investment objectives. Certain assets SunTrust maintains in collective and common funds will also be transferred. The series of transactions, subject to consent processes and approvals, is expected to close by yearend.
SunTrust will retain Ridgeworth's long-term asset management business. Ridgeworth and affiliated businesses had $65.1 billion of assets at March 31. Federated managed nearly $350 billion.