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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • Convergent Capital Management, LLC
  • City National Corporation
  • Wealth Management Firms
  • January 31, 2003
  • $6.5 Billion

Seller Details

Convergent Capital Management, LLC was formed in 1994 with private equity backing to acquire equity stakes in money management firms, and has grown over the past decade into an organization with 12 affiliates overseeing more than $18 billion in assets under management and administration. CCM achieved this status by (1) structuring creative transactions that incorporate continuing affiliate management equity ownership, and (2) delivering demonstrated value to each affiliate after the investment.

Buyer Details

With total assets of $11.9 billion as of December 31, 2002, City National is the second largest independent banking company headquartered in California. City National delivers banking, trust and investment services through 54 offices, including 12 full-service regional centers, in Southern California, the San Francisco Bay Area and New York City.

Transaction Summary

City National acquired CCM, a privately held Chicago-based company, and substantially all of its asset management holdings, including its majority ownership interests in eight asset management firms and minority interests in two additional firms. The transaction is expected to nearly double City National's assets under management to $13.9 billion and accelerates City National's program of acquiring outstanding external asset management firms in major wealth centers across the country. Six of the firms are investment counselors with a primary focus on affluent individuals, while the other four firms are asset managers that primarily serve the institutional market. Four of the CCM firms are located in California, and the remaining six are in Illinois, Michigan, Texas and Hawaii. The management team of CCM will continue to manage the affiliates and expand CCM's asset management platform.

This transaction is City National's 11th acquisition since 1995 and its third asset management deal in the last five years. In 1998, City National acquired North American Trust Co. in San Diego and in 2000, it purchased Reed, Conner & Birdwell, a Los Angeles investment manager.

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