Capital One Financial acquires healthcare investment bank TripleTree in an attempt to capitalize on the ongoing merger boom in the industry.
The acquisition is part of Capital One’s efforts to continue growing its corporate bank, which acquired the healthcare lending business of General Electric in 2015.
Darren Alcus, who heads corporate banking at McLean, Va.-Based Capital One, said the acquisition was a “natural opportunity” for the bank with $ 423 billion in assets. The deal will give TripleTree clients access to Capital One’s services for mid-market companies and help Capital One expand its relationships in the healthcare industry, he said.
“It’s an area that we think is dynamic, it’s complex,” said Alcus, who joined Capital One from GE Capital, in an interview. “This is an area where we believe we can provide valuable financial solutions to this clientele.”
The two companies have not disclosed the terms of the deal, which awaits customary closing conditions. TripleTree, which is based in Minneapolis but also has offices in New York City, will continue to be led by its current investment banking director, Justin Roth.
TT Capital Partners, a sister company of TripleTree that invests in healthcare businesses, will remain a separate company and will not be part of the acquisition.
The deal is expected to be concluded this year. Arnold & Porter law firm Kaye Scholer advised Capital One on the case, while Kirkland & Ellis advised TripleTree on legal matters and Broadhaven Capital Partners was its financial advisor.