Wintrust to Expand its Investment Management Business, Enters into Agreement to Acquire North American Asset Management Units from Rothschild & Co

Rhea-AI Summary

Wintrust Financial Corporation (NASDAQ: WTFC) announced an agreement to acquire two asset management businesses from Rothschild & Co, managing approximately $8 billion in assets. The businesses, Rothschild & Co Asset Management U.S. and Rothschild & Co Risk Based Investments, will merge into Wintrust's Great Lakes Advisors. This acquisition aims to enhance Wintrust's investment strategies and capabilities, focusing on expanding its wealth management services. The transaction is expected to close in early 2023, pending certain conditions.

Positive

• Acquisition will enhance Wintrust's investment management capabilities.
• Expected to increase scale and client base in the wealth management sector.
• Strengthens Great Lakes Advisors' reputation and investment strategies.

Negative

• None.

ROSEMONT, Ill., Nov. 14, 2022 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”) (NASDAQ: WTFC) and Rothschild & Co announced they have entered into an agreement for Wintrust to acquire two asset management businesses from Rothschild & Co North America Inc. Wintrust’s subsidiary, Great Lakes Advisors, LLC, agreed to purchase Rothschild & Co Asset Management US Inc. and Rothschild & Co Risk Based Investments LLC (collectively, “Rothschild & Co Asset Management U.S.”), investment managers with approximately $8 billion in assets under management specializing in equity investment strategies for institutional, intermediary and other clients. Upon completion of the transaction, Rothschild & Co Asset Management U.S. will merge into and operate the business as Great Lakes Advisors, LLC.

Edward J. Wehmer, Founder and CEO of Wintrust, commented on the pending transaction: “We have been very pleased with the growth in our wealth and investment management businesses at Wintrust. 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. We are thrilled to welcome the Rothschild & Co Asset Management U.S. team with its excellent reputation in the industry and an investment approach that aligns so well with our own core principles.”

Francois Perol, Managing Partner of Rothschild & Co, said: “We are delighted to have executed this agreement. Great Lakes will be an excellent home for our clients and our colleagues, and we wish them every success. As far as Wealth and Asset Management is concerned, we will focus our efforts on our rapidly growing European business. Our Global Advisory and Merchant Banking business will continue to expand in North America and across the globe.”

Terms of the Transaction
The terms of the transaction are not being disclosed. The transaction is expected to be completed early in the first quarter of 2023, subject to certain closing conditions.

About Wintrust
Wintrust is a financial holding company with assets of approximately $52 billion whose common stock is traded on the Nasdaq Global Select Market. Built on the "HAVE IT ALL" model, Wintrust offers sophisticated technology and resources of a large bank while focusing on providing service-based community banking to each and every customer. Wintrust operates fifteen community bank subsidiaries, with over 170 banking locations located in the greater Chicago and southern Wisconsin market areas. Additionally, Wintrust operates various non-bank business units including business units which provide commercial and life insurance premium financing in the United States, a premium finance company operating in Canada, a company providing short-term accounts receivable financing and value-added out-sourced administrative services to the temporary staffing services industry, a business unit engaging primarily in the origination and purchase of residential mortgages for sale into the secondary market throughout the United States, and companies providing wealth management services and qualified intermediary services for tax-deferred exchanges.

About Rothschild & Co
Rothschild & Co is a family-controlled and independent group and has been at the centre of the world’s financial markets for over 200 years. With a team of talented financial services specialists on the ground in over 40 countries, Rothschild & Co’s integrated global network of trusted professionals provides in-depth market intelligence and effective long-term solutions for its clients in Global Advisory, Wealth and Asset Management, and Merchant Banking.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Investors are cautioned that such statements are predictions and actual events or results may differ materially. Wintrust's expected financial results or other plans are subject to a number of risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Wintrust's most recent Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. Forward-looking statements speak only as of the date made and Wintrust undertakes no duty to update the information.

FOR MORE INFORMATION CONTACT:
Edward J. Wehmer, Founder & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating Officer
Thomas P. Zidar, Chairman and CEO – Wintrust Wealth Management
(847) 939-9000
www.wintrust.com

Marie-Laure Becquart, Investor Relations, Rothschild & Co
investorrelation@rothschildandco.com
Caroline Nico, Media Relations, Rothschild & Co
Groupmediaenquiries@rothschildandco.com
www.rothschildandco.com

Brunswick Group
Alex Yankus / Rachael Collins
Tel: +1 212 333 3810
rothschildandcous@brunswickgroup.com

FAQ

What is the value of the Wintrust acquisition of Rothschild & Co's asset management businesses?

The terms of the transaction have not been disclosed.

When is the Wintrust acquisition of Rothschild & Co expected to be completed?

The acquisition is expected to be completed in early 2023, pending certain closing conditions.

What impact will the acquisition have on Wintrust's asset management division?

The acquisition is expected to enhance Wintrust's investment management capabilities and expand its client base.

How much in assets does Rothschild & Co Asset Management U.S. manage?

Rothschild & Co Asset Management U.S. manages approximately $8 billion in assets.

What will happen to Rothschild & Co Asset Management U.S. after the acquisition?

Rothschild & Co Asset Management U.S. will merge into Wintrust's Great Lakes Advisors and operate under that business.