Raymond James Financial has reached a definitive asset purchase agreement to acquire Deutsche Asset & Wealth Management's (Deutsche AWM) private client services (PCS) business in the US.
PCS advisors generally specialize in serving sophisticated and high-net-worth clients as well as select institutional investors.
With this investment, Raymond James will be able to establish a more significant footprint of advisors in the country.
Expected to be completed in the third quarter of 2016, the acquisition will bring close to 400 employees from the PCS unit to Raymond James.
Deutsche AWM’s PCS unit will operated under the Alex. Brown brand, upon completion of the deal.
Deutsche Bank formed the US PCS unit after it acquired Alex. Brown from Bankers Trust Corp in 1999, Wall Street Journal reported.
With 200 advisers, the PCS unit currently manages nearly $50bn worth client assets from 16 locations across the country.
Deutsche Bank wealth management global head Fabrizio Campelli said: "As communicated in the Bank’s Strategy 2020 priorities, the US is a key geographic region for Deutsche Bank’s wealth management business.
"This agreement will allow us to focus on our strategic priorities including investing in our US Private Bank, which has grown consistently over the last ten years by serving ultra-high-net-worth clients through bespoke lending, trust, custody, banking and investment advisory solutions."
As part of the acquisition, Deutsche Bank and Raymond James will enter into a long-term agreement, under which PCS advisors will continue to be Deutsche Bank’s critical distribution partner for equity new issue securities to institutional and high-net worth clients in the US.
This transaction provides Raymond James with access to alternative investments and other sophisticated investment solutions, allowing it to expand its offerings to its existing and future high-net-worth clients.
Raymond James CEO Paul C. Reilly said: "Consistent with our growth strategy, this well-respected unit meets our highly selective parameters for cultural and strategic fit, ability to integrate and value.
"We feel confident that our core values of putting clients first, conservatism, independence and integrity are shared endeavors among this experienced group of approximately 200 advisors."
The transaction does not include Deutsche Bank’s US private bank, as reported by the publication.
In August this year, Deutsche Bank agreed to divest its India asset management business to Pramerica Asset Managers.
Image: Raymond James building in Memphis, Tennessee. Photo: courtesy of Trevor Birchett / Wikimedia Commons.