City National Bank has agreed to acquire Rochdale Investment Management, a $4.8 billion New York City-based investment firm.
City National's advisor was Berkshire Capital Securities LLC. Rochdale was advised by Sandler O'Neill & Partners L.P. City National expects the acquisition of Rochdale to close by the end of the second quarter.
Rochdale will be combined with City National Asset Management to create an $18 billion investment management firm called City National Rochdale Investment Management. It will offer a wide array of equity, fixed income and non-traditional investment alternatives. The new firm, a wholly owned subsidiary of City National Bank, will operate separately as a registered investment advisor within the bank's wealth management group.
"This is not just an acquisition, but rather a constructive combination of two complementary companies that share the same values and value propositions," said City National Bank Chairman and CEO Russell Goldsmith, in a statement.
"The result is a much stronger and diversified national wealth management company with the scale and skills to do even more for its clients and colleagues and our shareholders. The outstanding portfolio management and client teams of both companies will remain in place and continue to serve their clients and advisors just as they do today, but with a broader product array, enhanced investment capabilities and a strengthened management team."
City National Rochdale Investment Management will be led by Rochdale's current CEO, Garrett D'Alessandro. He will report to Richard Gershen, executive vice president of City National's wealth management group. Reporting to D'Alessandro will be City National's chief investment officer Bruce Simon, who will serve in that role in the new firm.
The acquisition is expected to bring City National Corporation's total assets under management or administration to more than $60 billion. Not included in this total are nearly $18 billion held by Matthews International Capital Management, a company in which City National holds a minority stake. Matthews manages assets invested in Asia.