TriState Capital Holdings in Pittsburgh has terminated an agreement to buy a fixed-income team.
The $3.6 billion-asset company said in a press release Monday that it had agreed in October to buy the team, along with $4 billion in assets under management, from an unnamed asset manager. TriState said it walked away after "determining the seller would not meet certain of its closing conditions."
TriState said there was no breakup fee associated with the deal, which had been scheduled to close next year.
The company also disclosed that Chartwell Investment Partners, an asset management business it bought in 2014, will no longer serve as a subadvisor to Vanguard. That relationship had been generating $4.5 million in annual revenue, or profit of about 2.4 cents a share. The company said it did not expect to record any impairment of goodwill or intangible assets tied to the end of the Vanguard relationship.
TriState said Chartwell still has $8 billion in assets under management, generating annual revenue of $37 million and contributing about 20 cents to its earnings per share.
"While we are clearly disappointed with the end of Chartwell's Vanguard relationship, we do not believe the revenue impact will have a material effect on earnings given this particular account's steadily declining size and fee rate," TriState Capital CEO James Getz said in the release. "We continue to expect Chartwell will deliver robust revenue growth, with increasingly positive top- and bottom-line contributions."