US Bank Sells Investment Management Firm in MBO

Matthew Smith

3 January 2007

US banking and wealth management group, Comerica Bank, has sold off its majority stake in investment firm, Munder Capital Management, following the completion of a management buyout yesterday. Members of the Munder executive management team, including chief executive John Adams, partnered with private equity firm Crestview Partners to fund the $232 million buyout. Michigan-based Munder managed approximately $27.1 billion in assets of institutional clients and high net worth individual investors at the end of last year. Comerica Bank, headquartered in Detroit, has an American national as well as an international presence and managed assets of $58.5 billion at 30 September 2006. A Comerica spokesman was contacted by WealthBriefing but was not able to comment on the deal yesterday. A statement from Munder said all key employees have endorsed the transaction and many look forward to opportunities to increase their investments in the firm as a result. Comerica will remain Munder’s largest client, according to the firm. Under the terms of the deal, Comerica retained full ownership of World Asset Management, the former quantitative and index-oriented investment management division of Munder Capital. Munder will continue to operate under its present name and will remain at its current headquarters.