Dynamic Market Continues to Fuel Hot Financial Services M&A Activity – 1H 2022 in Review

In the face of global economic headwinds, the financial services M&A sector continues to stay hot as organizations look to diversify and consolidate their offerings. In the first half of 2022, Dechert’s financial services M&A practice continued to advise some of the industry’s leading financial services organizations on their most important M&A matters. A sample of some of these exciting transactions include:

• Global Expertise – Dechert advised the Bank of Singapore on the sale of its in-house private market feeder fund platform to Institutional Capital Network, Inc. The fund platform consists of multiple funds, involving a total asset transfer of over US$2 billion. With the deal, the Bank of Singapore retained the client servicing responsibilities, while iCapital took over the management and operation of the bank’s private market feeder funds. The Bank of Singapore continues to source and monitor private market investments for its clients and provide ongoing advice to its clients on private market investments within a diversified investment strategy. iCapital will also provide custom private market funds for the Bank of Singapore’s high-net-worth clients. Timothy Goh, a corporate and securities partner at Dechert said, “The complexity of this cross-border deal really gave us the opportunity to leverage the seamless cross-practice collaboration between our corporate and securities and financial services teams and bring the best of Dechert’s knowledge and expertise to our client. We are very pleased to have supported the excellent Bank of Singapore team on this transaction.”
• Financial Institutions Branching Out – Dechert represented 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.
• Strategic Collaborations – Dechert represented longtime client Stifel Financial Corp. (NYSE: SF), a diversified global wealth management and investment banking company, on a number of fronts in the first half of 2022. Dechert is advising Stifel Financial Corp. and Eaton Partners, a Stifel company, on the launch of Twelve Degrees, a strategic collaboration with RCP Advisors, a subsidiary of P10, Inc., focused on investing in and providing capital solutions to leading emerging and first-time alternative investment fund managers. Twelve Degrees 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. Dechert also advised Stifel on its strategic collaboration with LFE Capital, a growth equity firm dedicated to providing capital to women-owned and managed health and wellness businesses. As part of this collaboration, Stifel is making a minority investment in LFE Capital and becoming an LP in its fourth fund.
• GP Stakes Deals – Dechert advised clients in the sale of a number of GP stakes over the first part of the year. Most recently, Dechert advised emerging markets investment firm 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. The majority of the proceeds are expected to be reinvested into Gramercy’s investment strategies, further aligning the firm with its limited partners. Similarly, Dechert advised Radcliffe Capital Management in Kudu Investment Management’s acquisition of a minority stake in Radcliffe and its affiliates.  Radcliffe Capital Management is an SEC-registered investment adviser that manages more than US$3.5 billion across defensive credit and opportunistic strategies. Its clients include a cross section of institutions and high-net-worth individuals. These two deals come on the heels of a similar deal done in Q4 2021, where Dechert represented investment advisor Douglass Winthrop Advisors in securing a minority investment from Kudu Investment Management.
• Banking Technology Transactions – Dechert is representing StoneCastle Partners, LLC in the sale of its subsidiary, StoneCastle Cash Insured Sweep, LLC (d/b/a interLINK), to Veritex Holdings, Inc., the parent holding company for Veritex Community Bank in a cash and stock transaction. StoneCastle Cash Insured Sweep provides cash management solutions to financial intermediaries, facilitating the investment of cash held in brokerage accounts into FDIC-insured banks.

“We are excited that Dechert continues to represent a growing number of key clients in the financial services sector on some of their most important M&A activity,” said partner Ken Young, who focuses his practice on financial services M&A.

One of the preeminent advisers to the financial services industry, Dechert delivers a thorough understanding of the unique issues inherent in this sector. As one of the most active law firms for M&A globally, Dechert knows how to negotiate and execute successful transactions in any deal environment. Since 2019, our financial services M&A lawyers have guided clients through more than 115 transactions totaling more than US$120 billion. For more information, please see our Financial Services M&A 2021 Highlights.

About Dechert

Dechert is a leading global law firm with 22 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.