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PrivateBancorp Expands By Launch in US Mid-West
Chicago-based PrivateBancorp is launching The PrivateBank - Kansas City to expand its private banking services in Missouri. Calvin Klein...
Chicago-based PrivateBancorp is launching The PrivateBank - Kansas City to expand its private banking services in Missouri.
Calvin Kleinmann, the former executive vice president and head of private banking at Gold Bank, will be chairman and chief executive officer of the new bank.
Ralph Mandell, chairman, president and chief executive of PrivateBancorp said: “We are excited about forming The PrivateBank - Kansas City, which is a continuation of our stated strategic objective of pursuing growth opportunities in the Midwest and other dynamic growth markets."
It is planned to open a loan production office, followed by a full service Kansas City banking office in early December, after regulatory waiting periods. It is also seeking to establish an additional office in the affluent Johnson County, Kansas market in the future.
Via a merger, PrivateBancorp will also acquire Midwest Financial Services, which was founded earlier this year by Mr Kleinmann and others to establish a bank in Kansas City.
To carry out the merger PrivateBancorp will create a new subsidiary, Kansas City Private Development Corporation, which will serve as the holding company for the new bank.
PrivateBancorp will take 82 per cent with the balance held by former stockholders of Midwest Financial, including members of the management team and local investors.
As part of the deal all minority shares will be acquired by PrivateBancorp after a maximum five years.
Mr Kleinmann said “Teaming up with PrivateBancorp provides us with a significant advantage in private banking and wealth management services to affluent individuals, professionals, business owners and entrepreneurs in the greater Kansas City metropolitan area”.
PrivateBancorp was founded in 1989 and claims to use a "European” tradition of private banking as its business model. It has 14 offices in the Chicago, Detroit, Milwaukee, and the St. Louis metropolitan areas.
