TIAA to sell banking unit to PE investor group

• TIAA is a provider of secure retirements and outcome-focused investment solutions
• TIAA will retain a non-controlling ownership stake in TIAA Bank
• TIAA Bank’s headquarters and main base of operations will remain in Jacksonville, Florida

TIAA has agreed to sell its banking unit to an investor group that includes Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street and Bayview Asset Management. No financial terms were disclosed.

Moving forward, TIAA will retain a non-controlling ownership stake in TIAA Bank.

According to terms of the deal, nearly all the bank’s current assets and business lines will be acquired by the new ownership, with the exception of TIAA Trust.

Proceeds from the bank sale will be returned to TIAA’s General Account, which the company manages for the benefit of its retirement clients.

“As we refocus on retirement, we have decided now is the appropriate time for TIAA Bank to begin a new chapter under new ownership,” said David Nason, TIAA’s chief operating officer on the sale, in a statement. “The changes we’re announcing are in the best interest of TIAA and our retirement clients, and for our bank’s consumer and commercial clients and the incredible TIAA Bank associate team. TIAA is making this move from a position of strength, and we are confident the bank is well-positioned for future growth and success.”

The transaction is expected to close in 2023.

TIAA Bank’s headquarters and main base of operations will remain in Jacksonville, Florida. The bank will operate under a new name, which will be announced when the transaction closes.

J.P. Morgan Securities LLC acted as exclusive financial advisor to TIAA while Jefferies LLC acted as lead financial advisor and Goldman Sachs & Co. LLC served as financial advisor to the investor group.

TIAA is a provider of secure retirements and outcome-focused investment solutions. TIAA has $1.2 trillion in assets under management, as of September 30, 2022.