StoneCastle Acquires Insured Deposit Sweep Business from Intermedium Financial
Company will offer the most comprehensive set of sweep solutions to financial institutions, administrators, and intermediaries
NEW YORK, Feb. 1, 2017 /PRNewswire/ — StoneCastle Insured Cash Sweep, LLC (“StoneCastle” or the “Company”), a wholly owned subsidiary of StoneCastle Cash Management, LLC, a market leading provider of insured deposit technology and services to institutional investors, announced today that it has acquired the insured deposit sweep business of Intermedium Financial, LLC (“Intermedium”). The transaction includes the InterLINKTM FinTech platform and related assets.
The purchase of Intermedium’s sweep business strengthens StoneCastle’s position as a leading insured deposit provider for institutional investors and fulfills its strategy of expanding its reach into broker-dealer, financial advisor, 401k, and additional market segments.
“We plan to be a disruptive and differentiated force in the insured sweep industry,” said Stephen Rotella, CEO of StoneCastle. “The InterLINK platform complements and augments our current technology-driven business and significantly expands our distribution options. We expect to add significant value to financial intermediaries and the clients they serve through the efficiencies created by this transaction and our proven ability to deliver deposit capacity.”
A highly complementary acquisition to cement future growth
StoneCastle has extensive sales and marketing experience in serving institutional clients’ insured investment needs and has one of the largest bank networks in the country. “With the addition of sweep capabilities to the business, coincident with pending SEC and DOL regulatory reforms, StoneCastle can effectively apply its solutions to brokerage firms, registered investment advisers, and other financial intermediaries facing extraordinary challenges and historic opportunities in providing client value while growing assets and profitability,” added Rotella.
John Marshall, Lead Director of Intermedium and Managing Member of WPB Partners, LLC, a private equity investor based in Richmond, Virginia, and the principal owner of Intermedium, added, “We are delighted to find the right home for our sweep business and FinTech platform. StoneCastle has a vibrant brand in this industry, a prudent yet ambitious growth strategy, and is a highly complementary organization to further the value the InterLINK platform offers financial intermediaries and investors.”
The company announced that it will operate the sweep business under the StoneCastle name while retaining the InterLINK brand. Existing customers and banks will not be impacted by the acquisition. Intermedium’s San Diego office will continue to serve as the Operations Center for the sweep business.
About StoneCastle Cash Management, LLC
StoneCastle Cash Management, LLC (“StoneCastle”) is a leading administrator of insured cash solutions for institutional investors and many of the world’s largest institutions. Today, the firm extends the reach of its operational and technology platforms through a daily cash sweep solution made available to brokerages, RIAs, trusts, and other programs offered through financial intermediaries and wealth managers. StoneCastle is backed by the strength and stability of world class partners, CIBC and Charlesbank Capital Partners.
StoneCastle is an investment adviser registered with the SEC. For more information regarding the firm, please see its Form ADV Parts 1 and 2A on file with the SEC. Registration with the SEC does not imply a particular level of skill or training. StoneCastle is principally owned by StoneCastle Partners, LLC, which was founded in 2003 and is one of the largest investors in community banks in the United States (www.stonecastle.com).
About Intermedium Financial, LLC
Intermedium Financial, LLC is a financial services company whose proprietary software solution provides a seamless investment bridge between FDIC insured bank accounts and asset managers, brokerage houses, institutional money managers, and other financial intermediaries looking to invest in stable deposits. Intermedium’s insured sweep technology provides a comprehensive, turnkey solution for brokers, banks, and institutional money managers.
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