Bank of America Sells Robertson Stephens Investment Management; New Owners Include Senior Management Team of the Firm.SAN FRANCISCO--(BUSINESS WIRE)--Nov. 19, 1998--Bank of America today announced that it has signed a definitive agreement to sell Robertson Stephens Investment Management (RSIM RSIM Regional Shore Installation Manager RSIM Remote Site Monitoring Equipment ) to a group of investors led by the senior management of RSIM. G. Randy Hecht, a founder of RSIM who currently serves as president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , will serve as chairman and CEO of the new company. "We pursued this management buyout Management buyout (MBO) Leveraged buyout whereby the acquiring group is led by the firm's management. management buyout See going private. because we strongly believe that returning to our roots as a private company with the same leadership team that founded the company in 1984 is the ideal ownership structure for our mutual fund shareholders," Hecht said. It is anticipated that the sale will be completed during the first quarter of 1999. The terms of the sale and the purchase price were not disclosed by the Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. or the purchasers. The decision to divest RSIM had been announced in June 1998 as part of the preparations for the pending merger with NationsBank. Bank of America acquired Robertson, Stephens & Company in October 1997, and the business included investment banking and investment management operations. In May 1998, Bank of America announced that the investment banking operations of Robertson Stephens would be sold to BankBoston Corporation. That transaction was completed in August 1998. Robertson Stephens investment management was founded in 1984 with an investment style focused on growth-stock investing. In the years since then, the firm has continually built upon its growth-stock expertise and added experienced portfolio managers in its value group. It has approximately $4 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , including close to $2 billion in mutual funds. The company currently offers mutual funds, institutional accounts, and private partnerships, including hedge funds and sub-advised accounts. RSIM is headquartered in San Francisco and has offices in Avon, Connecticut, and Tokyo. After the close of the sale, RSIM will be known as RS Funds. The sale of RSIM will not materially affect the earnings of Bank of America and does not include other units of Bank of America's Wealth Management Group, including Nations Funds, or the Pacific Horizon, Time Horizon, and World Horizon families of mutual funds. Bank of America's Wealth Management Group manages more than $203 billion in assets on behalf of institutions and individuals. NationsBank Corporation and BankAmerica Corporation merged on September 30, 1998, into the new BankAmerica Corporation (Bank of America). With $594 billion in total assets, it is the largest bank holding corporation in the United States with full-service consumer and commercial operations in 22 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . Bank of America provides financial products and services to 30 million households and two million businesses, as well as international corporate financial services for business transactions in 190 companies. Bank of America (NYSE NYSE See: New York Stock Exchange :BAC BAC abbr. blood alcohol concentration ) stock is listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , London and Tokyo stock exchanges. www.nationsbank.com www.bankamerica.com |
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