Citi closes sale of Puerto Rico personal banking business to Insigneo
Miami-based independent broker-dealer and Registered Investment Advisor Insigneo closed its acquisition of Citi International Financial Services, LLC in Puerto Rico, and Citi Asesores de Inversion Uruguay S.A., an investment advisory firm in the country’s free-trade zone.
The transaction has received regulatory approval. The financial terms of the deal were not disclosed.
In a press release, the companies stated that Citi maintains all existing bank deposit relationships with wealth clients moving to Insigneo, which offers a broad spectrum of investment products and wealth management capabilities.
Citi will continue to serve institutional clients through its Puerto Rico and Uruguay branches, as it has done so for the past 104 and 107 years; respectively.
The US Consumer Wealth team and the bank “remain deeply committed to Latin America, where Citi has operated for more than a century and built an unmatched network across 20 countries,” it stated.
The division will continue to serve clients using the Citigroup Global Markets Inc. broker dealer.
“The closing of the deal allows Citi to simplify its US Consumer Wealth Management business model, focused on providing leading wealth management solutions through Citi Global Markets Inc. broker-dealer and investment advisor, while strengthening our banking relationships with our existing clients in Uruguay, Puerto Rico, and throughout Latin America,” said said Scott Schroeder, head of U.S. International Personal Bank at Citi.
“In addition, it provides us an opportunity to expand banking services over time with Insigneo’s growing client base,” he said.
With the acquisition of CIFS and Citi Asesores, Insigneo will now exceed $17 billion in client assets and serve more than 400 investment professionals. The acquired entities will continue to operate independently under the Insigneo brand.
“This acquisition is truly transformational for Insigneo as it adds significant scale to our business and expands the reach of our platform, while enhancing our product offering by providing access to Citi’s banking solutions,” said Insigneo’s CEO Raúl Henriquez.
The transaction is the latest in a series of ongoing strategic moves and acquisitions as Insigneo continues to execute on its business model, which received a boost with the recent $100 million financing commitment by global investment firms Bain Capital Credit and J.C. Flowers & Co.
“We’re prepared for a seamless transition of the businesses we are acquiring, and we welcome all incoming employees, investment professionals and their clients, to Insigneo’s growing independent platform,” said Henriquez.