The combined fintech will have more than $220 billion of assets under administration and an expanded product offering to serve banks, credit unions, wealth managers and trust institutions.
NEW YORK (June 1, 2022) – Today, Reich & Tang Deposit Networks, LLC (“R&T”) and Total Financial Solutions, LLC (d/b/a Total Bank Solutions) (“TBS”) announced the successful completion of their planned business combination. Together, the combined firm will provide banks, credit unions, wealth managers and trust institutions with a larger selection of products and services, designed to meet their unique cash sweep, deposit funding and securities-based lending needs. The transaction will result in both companies being under common ownership of R&T Parent Holdings, LLC. Estancia Capital Partners, a private equity firm based in Scottsdale, Arizona, together with institutional co-investors, hold the majority ownership interest in R&T Parent Holdings, LLC, with the remaining ownership interest held by employees from both firms.
Following the transaction, R&T and TBS will have combined total assets under administration of more than $220 billion, and approximately 125 experienced professionals providing liquidity, cash sweep balance sheet management and other technology-enabled services and software solutions. The combined company will provide services to more than 300 banks and credit unions, over 100 wealth managers and trust institutions, including approximately 20 unique broker-dealer sweep programs. Both firms have long track records of providing superior client service and developing solutions that enhance their respective clients’ experience and deliver value to their underlying customers. R&T has been providing deposit and liquidity services to the banking and financial services industry in the U.S. since 1974, and TBS has been providing financial technology services to banks and wealth management institutions since 2004.
“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,” stated Joe Jerkovich, President of R&T. “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 response from our respective clients and the marketplace has been phenomenal,” explained Eric Pierce, Chairman of TBS, who has joined as a member of the Board of the holding company and will continue to provide strategic guidance to the organization. “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.”
“It is an exciting time for all of us. From the very beginning, the management teams from R&T and TBS have worked collaboratively.” said Takashi Moriuchi, Co-Founder and Managing Director at Estancia. “Having achieved a successful close, their demonstrated effectiveness in working as a team has only increased our confidence in our original investment thesis, further validating the strategic possibilities of combining the two firms.”
The executive leadership team includes experienced leaders from both R&T and TBS. Michael Lydon and Joe Jerkovich will continue to lead the organization as Chief Executive Officer and President, respectively, with Kevin Bannerton, Joe Sarbinowski, and Gary Hom from TBS joining the executive management team, together with Tom Nelson, Steve Genereau, Andrew Mintz and Sabra Baum from R&T.
Seward & Kissel LLP served as legal advisors to R&T and Estancia. For TBS, Piper Sandler served as exclusive financial advisor and Debevoise & Plimpton was legal counsel.
About R&T
Reich & Tang Deposit Networks, LLC and its affiliates (R&T), located in New York, NY, provide deposit, liquidity and cash management solutions for banks, credit unions, broker-dealers, wealth managers, trust companies and other financial institutions throughout the U.S. Through its Demand Deposit Marketplace® program, R&T offers a reciprocal deposit program to banks, credit unions and other financial institutions that provides underlying customers with the ability to obtain an expanded level of Federal Deposit Insurance Corporation (FDIC) and/or National Credit Union Share Insurance Fund (NCUSIF) insurance on deposits placed through the program. R&T also is a trusted provider to large broker-dealers and other financial institutions that offer insured cash sweep programs to their customers. R&T is focused on delivering unmatched client service by creating, improving, and delivering smarter solutions to help banks, wealth managers and other financial institutions maximize the value of their deposit, liquidity, and short-term investment programs.
About TBS
Total Financial Solutions, LLC (d/b/a Total Bank Solutions) (TBS) is a financial technology firm located in Hackensack, NJ. The company was founded in 2004 to serve the needs of banks and wealth management organizations. Its offerings include its FDIC Insured Deposit Program (IDP) and Loan Management System (LMS). With over $100 Billion in assets under administration, IDP provides wealth managers and their customers the benefit of extended FDIC insurance on their deposits and, for participating banks, access to a stable, diversified, and cost-effective source of deposit funding. LMS is an end-to-end securities-based lending and collateral monitoring platform that connects banks with borrowers seeking collateralized loans.
About Estancia
Estancia is a specialist private equity firm focused on lower-middle market investments in financial services companies that leverages its industry and operating experience to improve the strategic position, growth, cash flow and value of companies in which it invests. Estancia often partners with companies that are niche market leaders with recurring revenues, attractive margins, improving returns on invested capital and strong secular growth prospects. Estancia’s Principals have a distinguished history of partnering with management teams in providing buy-out and growth capital to facilitate strategic development of portfolio companies including management buy-outs from larger financial firms, private ownership/succession transitions and growth initiatives. For more information, visit www.estanciapartners.com.