TIAA sale of TIAA Bank
Davis Polk is advising TIAA on its sale of TIAA Bank to new investors consisting of funds managed by Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street and Bayview Asset Management. Under the agreement, which is subject to regulatory approvals, TIAA Trust will be removed from TIAA Bank prior to the sale. TIAA will retain a non-controlling ownership stake in the bank. Financial terms of the transaction were not disclosed. The transaction is expected to close in 2023, after final regulatory approvals and the satisfaction of other closing conditions.
TIAA is a leading provider of secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions. TIAA Bank, a division of TIAA, FSB, provides nationwide banking services to consumer and commercial clients through a variety of channels, including online and mobile applications, as well as its Florida-based financial centers.
The Davis Polk financial institutions M&A team includes partners Randall D. Guynn, William L. Taylor and Cheryl Chan, counsel Christopher M. Paridon and associates Malik M. Khalil, Alex S. Burger and Claire Fischer. Partner Jeffrey P. Crandall is providing executive compensation advice. Partner Michael Mollerus is providing tax advice. Partner Pritesh P. Shah is providing intellectual property advice. Partner Shane Tintle is providing capital markets advice. Members of the Davis Polk team are based in the New York and Washington DC offices.