AST
Trust Company, a division of American Stock Transfer & Trust
Company, has acquired Capital Trust Co. of Delaware, creating what the
Phoenix-based trust company calls the nation's fifth largest
"advisor-friendly" trust company with $19 billion in assets. Initially,
Capital Trust will continue to operate under its own name.
Capital Trust's
former majority shareholder, CSC of Wilmington, Del., had put the trust
company up for sale last year after it apparently concluded that the
business was not a sound strategic fit with CSC's primary
agent-of-record business. However, CSC did keep some of the corporate
trust business that Capital Trust had developed. No purchase price was
disclosed.
The new combined
entity will operate offices in New York, Phoenix, Wilmington, Denver
and Portland, Ore. It will retain its status as a Delaware-chartered
trust company, allowing advisors and their clients to continue enjoying
the benefits of Delaware's favorable laws governing trusts. Capital
Trust's founder and original CEO, Jeff Lauterbach, frequently cited
Delaware trust law as an advantage of affiliating with the company.
Greg Tschider,
president of AST Trust, stresses that AST is buying the entire company,
including the Delaware charter, and there will be no need for advisors
to redocument their accounts. "I think what's important to them
[advisors affiliated with Capital Trust] and to their clients is that
there really is no disruption," he says.
He also notes that
Capital Trust staff will remain intact, adding that AST has signed a
two-year lease, with an option for five years, on the Delaware office
currently occupied by Capital Trust. Among the services that will be
made available to Capital Trust advisors as a result of the acquisition
are retirement trust administration services.
Tschider says AST
and Capital Trust have similar strategies and client profiles, centered
on services for "independent advisors and brokers at wirehouses that
allow them to leverage our solutions to gather more assets." The
acquisition of the Delaware charter will also bring potential
advantages, he says. AST operates under a New York charter.
He said he doesn't
anticipate any changes in fees for Capital Trust advisors. "The Capital
Trust existing schedule is very consistent with ours," he explains.
The AST technology
platform will gradually integrate Capital Trust's database, but it will
be a transparent process for Capital Trust advisors, he says.
"Technology wise, we probably have a more robust technology platform,
in large part due to our size, so we plan to integrate capital trust
into our technology platform."