SunTrust Banks on Friday sold off $17 billion in managed assets from its RidgeWorth Capital Management subsidiary to a Pittsburgh, Pa.-based investment house.
Federated Investors is acquiring the assets of nine RidgeWorth money market mutual funds.
The deal is subject to regulatory approval. It is expected to be completed by the end of the year.
The move will keep RidgeWorth under the Atlanta-based regional bank’s umbrella.
SunTrust, the No. 1 bank in Atlanta by market share, has been shopping part of its institutional investment business since January, and was close to a deal with a British firm earlier this year. But talks with London-based Henderson Group broke off in June.
RidgeWorth is a holding company of eight boutique money managers throughout the East Coast. It had $65.1 billion in assets under management at the end of the first quarter.
"These actions reflect SunTrust's ongoing efforts to ensure its business mix maximizes client satisfaction and shareholder value," SunTrust President William H. Rogers Jr. said in a news release.
SunTrust, like other large regional banks, has been looking at streamlining their business. This latest move echos actions by other large money center banks to spin off non-core operations.
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