SunTrust Banks, in case you forgot, announced last month that discussions to sell portions of RidgeWorth to Henderson Group fell through. It was SunTrust’s second attempt to sell RidgeWorth, which has stakes in eight investment boutiques, including Alpha Equity Management and Seix Investment Advisors. RidgeWorth collectively manages $65 billion in assets.
Has anything changed in the past month? Yes and no. A SunTrust spokesman said Friday that the Atlanta bank is continuing to review strategic options. Same thing we heard last month.
But peHUB has learned that RidgeWorth is off the market for now.
SunTrust, which is trying to pay off $4.9 billion in TARP, is believed to be letting the situation “simmer down” and will likely figure out what to do with RidgeWorth at a later date.
In June, I wrote that SunTrust should try to sell the business to a financial buyer. I’ll say it again. PE wasn’t allowed in the most recent attempt to sell RidgeWorth. SunTrust should recognize that financial buyers are a reasonable exit for them.