Magazine article American Banker

Boston Private Sells Businesses

Magazine article American Banker

Boston Private Sells Businesses

Article excerpt

Byline: Matt Ackermann

Boston Private Financial Holdings Inc.'s chief financial officer said Wednesday it decided to sell a business unit and its stake in another to their management teams because both had shrunk considerably and no longer had a "material impact" on the parent company's bottom line.

Boston Private said late Tuesday that it had sold its 76% interest in Palo Alto, Calif.-based Sand Hill Advisors LLC to its management team with the financial support of Fiduciary Network. Separately, it said it sold Boston Private Value Investors to its management team.

The prices were not disclosed.

David Kay, Boston Private's chief financial officer, said that collectively the two firms contributed less than 2% of Boston Private's revenue and less than 1% of profit.

"These are viable companies, but they are small," he said in an interview. "They don't have a material impact on our business."

Boston Private bought Boston Private Value in 2001 and the Sand Hill stake in 2000. Kay said the transactions are not expected to have a material impact on its earnings.

He said Boston Private Value's assets under management shrank by almost half in the past two years, to $500 million at Dec. 31 from $960 million at the end of the 2006. Sand Hill's assets under management fell to $800 million, from $1.3 billion in the middle of 2007, Kay said.

Boston Private has no immediate plan to sell other units, he said, but if any shrink as Boston Private Value and Sand Hill did, "it is always an option, but right now we are happy with our lineup of affiliates. …

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