U.S. Bank signs definitive agreement to acquire PFM Asset Management

By Pavithra R

U.S. Bank has announced entering into a definitive agreement to purchase PFM Asset Management under its subsidiary, U.S. Bancorp Asset Management.

Under the agreement, PFM Asset Management will continue to operate as a separate entity. PFM Asset Management and U.S. Bancorp Asset Management had combined assets under management and assets under administration of more than $325 bn on March 31, 2021.

“PFM Asset Management brings a wide array of client relationships and product offerings, including local government investment pools, outsourced chief investment officer services and separately managed accounts in both fixed income and multi-asset class strategies. These services complement U.S. Bank’s current book of business, and we’re thrilled to have the opportunity to increase our presence nationally and solidify U.S. Bank’s position as a leading provider of investment solutions,” said Eric Thole, head of U.S. Bancorp Asset Management.

“PFM Asset Management has a great reputation in the public space, and that’s a testament to its talent. U.S. Bank is known for working with clients one-on-one to understand their unique needs and delivering customized, proactive solutions to help them meet their objectives. We’re excited to put the variety of resources offered by U.S. Bank to work for our new colleagues and clients,” added Thole.

The deal is expected to close in the fourth-quarter 2021, subject to regulatory approval and satisfaction of customary closing conditions. Financial terms were not disclosed. PFM’s financial advisory business is not part of this acquisition and will continue to operate independently.

“PFM will continue to provide outstanding financial advisory and consulting services to state and local governments and the non-profit sector,” said Dan Hartman, who currently leads PFM’s financial advisory practice and will lead PFM as its president and CEO after closing.

U.S. Bancorp Asset Management is part of U.S. Bank’s Wealth Management and Investment Services division, which has more than $8.6 tn in assets under custody and administration and $244 bn in assets under management, globally. Besides offering asset management products and services, it also offers global corporate trust and custody services, alternative investment, fund custody and administration services, and wealth management services.