Wintrust Financial in Rosemont, Illinois, is beefing up its wealth management business by acquiring two U.S. units of the global investment firm Rothschild & Co.
The acquisition will add $8 billion of assets under management to Wintrust's wealth subsidiary, Great Lakes Advisors. Financial terms were not disclosed.
The deal will further propel Wintrust's growth in wealth and investment management, CEO Ed Wehmer said Monday in a news release. Wintrust, which is acquiring Rothschild & Co Asset Management U.S. and Rothschild & Co Risk Based Investments, had $32.8 billion of assets under management on Sept. 30.
"The addition of Rothschild & Co Asset Management U.S. to our team at Great Lakes Advisors will bring further scale, capabilities, and investment talent to the organization as it strives to deliver superior investment strategies to its growing institutional, intermediary, and private wealth clients," Wehmer said in the release.
Rothschild & Co Managing Partner Francois Perol said Great Lakes "will be an excellent home for our clients and our colleagues," indicating that the selling firm is shifting away from U.S. wealth management to focus on building its European operations. Still, Perol said the company's global advisory and merchant banking businesses will keep expanding in North America.
The two companies expect the deal to close early in the first quarter of next year, pending certain closing conditions.
The acquisition marks another example of banks
At Wintrust, wealth management revenues rose to $33.1 million during the third quarter, up nearly 6% from the prior quarter. The increase was largely due to growth in certain property exchange services from the Chicago Deferred Exchange Company,
Other banks also announced moves in wealth management this week.
On Monday, San Francisco-based First Republic Bank said it was adding an eight-person team to its investment management division.
Truist Financial in Charlotte, North Carolina, said Tuesday that it launched a new self-directed investment portal for its customers, where they can open brokerage and retirement accounts with commission-free trading.
