New York City-based Reich & Tang Deposit Networks LLC, and Hackensack, N.J.-based Total Bank Solutions LLC completed their business combination on June 1.
The combined company will have more than $220 billion of assets under administration and an expanded product offering for credit unions, banks, wealth managers and trust institutions. The combined company will provide services to more than 300 banks and credit unions, more than 100 wealth managers and trust institutions, including approximately 20 broker-dealer sweep programs. There will be approximately 125 employees providing liquidity, cash sweep balance sheet management and other technology-enabled services and software solutions.
Both companies will be under common ownership of R&T Parent Holdings LLC. The Scottsdale, Ariz.-based private equity firm Estancia Capital Partners, with institutional co-investors, hold majority ownership in R&T Parent Holdings. The remaining ownership interest is held by employees from both firms.
“We are thrilled to have reached this significant milestone and we are excited to bring the expanded capabilities of our combined firm to our clients,” said R&T President Joe Jerkovich. “As we stated when we first announced the transaction, both firms share the same fundamental values and commitments to our clients, communities, employees and other stakeholders and our goal is to continue to offer innovative products differentiated through personalized and value-driven service. We are now in a position to turn that vision into a reality.”
The executive leadership team includes leaders from Reich & Tang and Total Bank Solutions. Michael Lydon and Jerkovich will continue to lead the organization as CEO and president, respectively. Kevin Bannerton, Joe Sarbinowski and Gary Hom, all from Total Bank Solutions, will join the executive management team, with Tom Nelson, Steve Genereau, Andrew Mintz and Sabra Baum from Reich & Tang.
“The response from our respective clients and the marketplace has been phenomenal,” said Eric Pierce, chair of Total Bank Solutions, who has joined the combined organization as a board member of the holding company. “Our clients have responded enthusiastically and have been very supportive of the combination, recognizing the expanded ways we can now help them to achieve their goals.”
New York City-based Seward & Kissel LLP served as legal adviser to Reich & Tang and Estancia. For Total Bank Solutions, the Minneapolis-based investment banking company Piper Sandler served as exclusive financial adviser and the New York City-based law firm Debevoise & Plimpton was legal counsel.