Late yesterday, Reuters posted an article, "SunTrust shops RidgeWorth asset management unit: sources", which says, "U.S. regional bank SunTrust Banks Inc is trying to sell RidgeWorth Investments, its multi-boutique asset management business, amid losses due to the financial crisis, people familiar with the matter said on Monday." (See also, MutualFundWire's "Sales Buzz Surrounds a Bank's Mutual Fund Unit".)
RidgeWorth, the former STI Classic Funds complex, manages over $60 billion, according to its website (as of Sept. 30, 2009). Its short-term fixed-income unit, known as StableRiver Capital Management, manages 15 U.S. money funds with $18.2 billion according to the Crane Data's Money Fund Intelligence XLS (Nov. 30, 2009). The family ranks 21st out of the 83 money fund complexes tracked by Crane Data and its money fund assets have declined by $5.9 billion, or 24.6% in the 12 months through Nov. 30.
Reuters says, "SunTrust is being advised by investment bank Sandler O'Neill on a potential sale of RidgeWorth, which owns interests in eight investment boutiques, these people said, requesting anonymity because the process is private. SunTrust and Sandler O'Neill declined to comment."
The article adds, "RidgeWorth's money market business could be of interest to firms like Federated Investors Inc, Fidelity Investments and State Street Corp, the other banker said." It quotes the unnamed source, "They have built a nice practice for a bank. It is highly regarded."
The company's money fund unit and its "enhanced cash" funds experienced their share of troubles back during the subprime liquidity crisis. See some of our previous Crane Data News articles, such as, "SunTrust's STI Classic Funds Obtains No-Action Letter on Cheyne SIVs" (Nov. 13, 2007), "SunTrust Discloses Backing of STI Classic Funds, 'Not a Precedent'" (Dec. 20, 2007), and "STI Classic Funds To Be RidgeWorth, Preparing for Money Fund Exit?" (March 13, 2008).
