Dechert’s Financial Services M&A Highlights

Financial Services M&A Market Continues Upward Trajectory: Dechert’s 2022 Highlights

Despite economic volatility and changing market conditions, the financial services industry continued to experience high levels of consolidation and strategic deal making.

“Financial services M&A activity remains robust, particularly in the private credit, asset management and fintech spaces. As companies seek to stay ahead of the competition, expand product offerings and meet evolving client needs, we expect this trend to continue throughout 2023 and beyond,” said partner Steve Pratt who focuses his practice on financial services M&A.

Dechert’s financial services M&A lawyers have advised clients across various subsectors of the industry, providing unparalleled guidance by creating tailored solutions for complex and bespoke matters. Dechert’s engagement by long-time client Stifel Financial Corp. on its recent joint ventures and strategic collaborations highlights these capabilities and market knowledge.

“Dechert played a key role in guiding Stifel on a number of recent transactions, including a leveraged lending joint venture and strategic collaboration with Korea Investment & Securities, one of the largest securities firms in Korea. Our combined M&A and regulatory expertise was critical in facilitating these transactions,” said Pratt who advised on these matters. “Dechert's market know-how and practical approach helped ensure that these transactions were effectively structured, providing a strong foundation for future growth.”

In 2022, Dechert completed more than 20 deals in the financial services industry totaling approximately US$35 billion. Highlights from the year include representing:

• Bank of Singapore in the sale of its in-house private market feeder fund platform consisting of multiple funds and involving a total asset transfer of over US$2 billion, to Institutional Capital Network, Inc.
• Certain members of the board of directors of Castle Lending Enterprises LLC, the parent entity of College Ave Student Loan Servicing, LLC, a major fintech lender for private student loans, in connection with its merger with Thrivent Financial for Lutheran, a Fortune 500 company.
• Gramercy Funds Management LLC in Kudu Investment Management’s acquisition of a minority stake in Gramercy and affiliates. Kudu is an independent provider of permanent capital solutions to asset and wealth managers worldwide.
• JP Morgan Chase & Co. in its acquisition of FROSCH International Travel, Inc., one of the oldest and most successful corporate and luxury travel agencies in the U.S. With co-headquarters in New York City and Houston, FROSCH has more than 40 locations worldwide and has more than 2,000 employees.
• One Equity Partners in its acquisition of the corporate online banking solutions from ACI Worldwide, a global leader in mission-critical, real-time payments software.
• Radcliffe Capital Management, an SEC-registered investment adviser that manages more than US$3.5 billion across defensive credit and opportunistic strategies, in Kudu Investment Management’s acquisition of a minority stake in Radcliffe and its affiliates.
• Sofinnova Partners, a leading European life sciences venture capital firm, in connection with a long-term strategic and financial partnership in life sciences with Apollo, a global, high-growth alternative asset manager, that included Apollo taking a minority equity interest in Sofinnova.
• Stifel Financial Corp., a diversified global wealth management and investment banking company, on the launch of Twelve Degrees, a strategic collaboration with RCP Advisors that will provide flexible capital solutions, strategic advice, back-office infrastructure, access to broader Stifel banking services and global distribution, capital formation and marketing capabilities designed to help emerging and first-time managers build and scale their businesses; on its strategic collaboration with LFE Capital, a growth equity firm dedicated to providing capital to women-owned and managed health and wellness businesses; and on the formation of a leveraged lending joint venture and strategic collaboration with Korea Investment & Securities Co., Ltd.
• StoneCastle Partners, LLC in the sale of its subsidiary, StoneCastle Cash Insured Sweep, LLC (d/b/a interLINK), which provides cash management solutions to financial intermediaries, to Webster Financial Corporation’s principle bank subsidiary, Webster Bank, N.A.
• TAG Holdings Limited and its subsidiaries in its business combination with AGBA Acquisition Limited, a special purpose acquisition company. The TAG Business provides products and infrastructure for marketplaces that bring together producers and consumers in the banking and wealth management sectors, among others.

Please see the Financial Services M&A 2022 Highlights brochure for an in-depth look at last year’s notable body of work.