U.S. Bank Adds New Division to Serve Private Capital Asset Managers

Rhea-AI Summary

U.S. Bank launches Private Capital and Global Asset Management division led by Stephen Jeselson to serve over 200 private capital clients, offering fund custody, lending, and capital markets services. The division aims to grow offerings to private equity and credit firms, enhancing financial services and expertise.

Insights

Market Research Analyst

The creation of U.S. Bank's Private Capital and Global Asset Management division is a strategic move that aligns with the broader industry trend of consolidation and specialization within financial services. By centralizing services such as fund custody, administration, lending and capital markets underwriting, U.S. Bank is positioning itself to offer a more streamlined and cohesive service package to its clients. This can lead to enhanced customer retention and potentially attract new clients seeking comprehensive asset management solutions.

The appointment of Stephen Jeselson, with his extensive experience in private equity fund management, suggests a commitment to leveraging industry expertise to drive the division's growth. As private capital funds continue to see increased inflows, U.S. Bank's focus on expanding its financial services to this sector could result in increased market share and revenue growth, given the high demand for specialized financial products and services tailored to private capital firms.

Financial Analyst

U.S. Bank's launch of a dedicated division for private capital and global asset management is a significant development that could impact its financial performance. By catering to over 200 existing private capital clients and potentially more, the bank could see an increase in its assets under management (AUM), which is a critical metric for evaluating the performance of asset management firms. AUM growth typically translates to higher fee-based revenue, which is less sensitive to interest rate fluctuations and can provide a stable income stream.

The division's focus on specialized services, such as fund finance and foreign exchange, positions U.S. Bank to capitalize on niche markets within asset management. The ability to offer differentiated products, such as corporate trust and global fund services, where the bank has market leadership, could allow it to command premium pricing and improve profit margins. Investors should monitor the division's contribution to U.S. Bank's overall revenue and profitability in the coming quarters.

Legal Expert

The establishment of a new division within U.S. Bank dedicated to private capital and global asset management underscores the importance of regulatory compliance and risk management in the financial sector. As the division grows, it will be critical for the bank to navigate the complex regulatory landscape associated with fund custody, administration and capital markets activities. Ensuring compliance with securities laws and regulations will be paramount to maintain client trust and avoid potential legal and financial repercussions.

Furthermore, the division's expansion into global asset management services will require adherence to international financial regulations and standards. The expertise of legal professionals in cross-border transactions and foreign investment regulations will be essential to mitigate legal risks and facilitate the seamless provision of services to a global clientele.

Stephen Jeselson to lead new team, which will serve more than 200 existing private capital clients

MINNEAPOLIS--(BUSINESS WIRE)-- U.S. Bank today announced it has launched a new division dedicated to serving private capital firms and global asset managers.

The Private Capital and Global Asset Management division brings together all parts of the bank that currently serve more than 200 private capital clients with a range of products and services, including fund custody and administration as well as lending and capital markets underwriting and distribution. The centralized team of private capital experts streamlines the experience for asset managers and will help the bank grow its offering to additional private equity and private credit firms and other diversified investment managers.

Stephen Jeselson has been named head of the division. For the last five years, Jeselson has been a managing director at U.S. Bank, helping lead the bank’s financing of private equity firms and their portfolio companies. He has more than 25 years’ experience partnering with private equity fund managers to help them succeed.

“Our unique product mix – especially with our industry-leading corporate trust and fund services capabilities – has put us in an excellent position to meet the needs of private capital asset managers,” said Gunjan Kedia, vice chair of Wealth, Corporate, Commercial and Institutional Banking. “With a proven service model designed for the complexities of managing these funds, we have developed deep relationships with many of the leading private capital asset managers. The new division will create the focus and resources necessary to give our growing number of private capital clients access to the financial services and expertise they need.”

U.S. Bank’s Private Capital and Global Asset Management division provides comprehensive fund finance, foreign exchange, treasury management, depositary services, capital markets solutions and trustee capabilities to the asset management industry. U.S. Bank is differentiated by its product offerings with market leadership in Corporate Trust and Global Fund Services offerings to private capital and other fund managers.

Assets under management in private capital funds have grown considerably in recent years, alongside the expansion of the broader global asset management industry. The new division will continue to expand upon U.S. Bank’s success in its financing and asset-servicing capabilities for the industry.

About U.S. Bank

U.S. Bancorp, with more than 70,000 employees and $663 billion in assets as of December 31, 2023, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2023 World’s Most Ethical Companies and Fortune’s most admired superregional bank. To learn more, please visit the U.S. Bancorp website at usbank.com and click on “About Us.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20240222636837/en/

Todd Deutsch, U.S. Bank Public Affairs and Communications

todd.deutsch@usbank.com | 612.303.4148

Source: U.S. Bancorp

FAQ

What division has U.S. Bank launched?

U.S. Bank has launched the Private Capital and Global Asset Management division.

Who is leading the new division at U.S. Bank?

Stephen Jeselson is leading the new division at U.S. Bank.

How many private capital clients does the division serve?

The division serves over 200 private capital clients.

What services are offered by the new division?

The division offers fund custody, lending, and capital markets underwriting and distribution services.

What is the focus of the new division at U.S. Bank?

The new division focuses on providing financial services and expertise to private capital asset managers.