Blackstone Buying Promontory
We learned from the private-equity website PE Hub that, "Blackstone Group is buying Promontory Interfinancial Network for $2.5 billion, sources told Buyouts." Their article, "Blackstone to scoop up Promontory Interfinancial," explains, "Launched in 2002, Promontory provides technology-based services to banks to help them retain large-dollar relationships. The Arlington, Virginia, fintech supplies balance sheet management as well as deposit allocation services to 3,000 financial institutions, the company's website said. Mark Jacobsen, Promontory's president and CEO, is the former chief of staff at the FDIC and the Office of the Comptroller of the Currency. Eugene Ludwig, former U.S. Comptroller of the Currency, founded Promontory Interfinancial with several other leading bank executives.... Promontory was envisioned as a network comprised of thousands of financial institutions whose 'synthetic size' would help each member institution compete more efficiently, a statement said." An 8-K filing for The Bank of New York Mellon states, "On September 11, 2019, MCDI (Holdings) LLC, a wholly-owned subsidiary of BNY Mellon, along with the other holders of Promontory Interfinancial Network, LLC, entered into a definitive agreement to sell their interests in PIN. The transaction is expected to close in the fourth quarter of 2019, subject to customary closing conditions. Upon the closing of the transaction, BNY Mellon expects an after tax gain of approximately $600 million." Promontory runs the CDARS (certificate of deposit account registry service) and IND (insured network deposits) programs. `Promontory is one of the largest networks servicing the $1.5 trillion brokerage sweeps market.
