StoneCastle Cash Management, LLC Reports Record Asset and Account Levels
· Seven Consecutive Quarters of AUA Growth
· Captures Attention of the Market with Innovative Cash & Liquidity Solutions
New York, April 18, 2018—StoneCastle Cash Management, LLC (StoneCastle), a well-established leader in cash management and FDIC insured cash solutions, today announced its seventh consecutive quarter of growth as the company continued to creatively penetrate new markets, develop adaptive cash management solutions, and uncover significant business opportunity for its clients within a rapidly changing cash landscape.
Since its founding, StoneCastle has steadily built on its mission to connect institutional and retail investors with banks. Market demand for safety in cash is now being combined with a rising interest rate environment, which StoneCastle believes has created incredible opportunity for those that it serves.
“The one constant in our business is that all institutions and individuals have cash that they want to safely optimize,” said Dan Farrell, Chief Executive Officer of StoneCastle. “Our job has remained solely focused on the objective of delivering innovative, world class cash management and deposit solutions that banks, treasury professionals/institutions, brokerages, RIAs and other financial intermediaries can strategically utilize as they strive to safely improve margins and client value. It is a formula that has helped our clients and one that we will continue to employ.”
StoneCastle’s keen focus on cash and its self-proclaimed commitment to being a disruptor and differentiator for the benefit of its clients has enabled the firm to grow steadily and post some impressive business highlights over the past twelve (12) months:
- Total assets under administration (AUA) grew by nearly 23%, to a company high of more than $14 billion
- Total number of client firms/entities increased approximately 29% to 2,469 institutions, banks, and brokerages/RIAs
- Successfully onboarded three new clearing/custody relationships serving hundreds of RIAs and brokerages within the first 10 months of bringing the offering to market
- Expanded its successful flagship Federally Insured Cash Account (FICA®) offering to now support RIAs and brokerages while continuing to be a go-to vehicle for institutional operating cash balances
- Broadened its bank network by 14% to include nearly 800 banks and maintained its standing as one of the largest active deposit bank networks in the country
Factoring greatly into the success of the past year has been the levering of the company’s brand as an expert in institutional cash management. Identifying the changing cash landscape well in advance, the firm has transitioned this expertise into a stronghold within the financial intermediary/retail space through last year’s acquisition of the assets and cash sweep technology of Intermedium Financial, LLC. In this short amount of time, the firm successfully onboarded three major clearing/custody platforms that currently service hundreds of brokerages and RIA firms across the country.
“The financial advice model has changed significantly over the past several years,” says Frank Bonanno, Managing Director and Head of Marketing at StoneCastle. “The sophistication of the advised client has grown markedly and the need to equip advisors with comprehensive cash management solutions for high-net-worth/ultra-high net worth clients, businesses, and organizations is a necessity. Gone will be the days where advisors are just putting cash in a money fund or a T-bill. They need solutions that are commensurate with the level of expertise they offer and provide them with unique and thoughtful ways to help protect client wealth while striving to attract assets held outside of the advisory relationship. This is the value that our clients are realizing with StoneCastle today.”
With a strategic approach that centers on building partnerships with clients, developing solutions that align business objectives and client needs, and a fierce commitment to the primary tenet of cash—safety, StoneCastle continued to broaden its appeal across multiple markets. “More than seeing the numbers that have supported our seven straight quarters of growth, we want our clients and others to see the passion we put into helping them grow their businesses,” Farrell points out. “We know that cash has historically been viewed as a commodity so we are very proud of the commitment we have in being a differentiator that is helping to reshape the way companies, advisors, and investors think about cash.”
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About StoneCastle Cash Management, LLC
StoneCastle Cash Management, LLC, is a leading administrator of insured cash solutions for many of the world’s largest institutions and family offices. With an active network or nearly 800 banks, the firm extends the reach of its operational and technology platforms through institutions, public and private entities, hedge funds, colleges and universities, foundations, endowments, brokerages, and other financial intermediaries and wealth managers. StoneCastle is principally owned by StoneCastle Partners, LLC and is backed by the strength and stability of world class partners, CIBC and Charlesbank Capital Partners.
Assets quoted are as of March 31, 2018, and include Bulk Insurance Deposit Services (BIDS), a program where StoneCastle Cash Management acts as a consultant and introduces banks to third party administrators. Assets in BIDS are not included in the calculation of StoneCastle Cash Management’s regulatory assets under management in its Form ADV.