New York, NY – December 21, 2021
Flexpoint Ford, LLC (“Flexpoint Ford”) today announced that its Flexpoint Asset Opportunity Fund II (“Asset Opportunity Fund”) provided a preferred equity investment to support Estancia Capital Partners’ (“Estancia”) strategic investment in Reich & Tang Deposit Networks, LLC (“Reich & Tang” or “R&T”). Reich & Tang is a New York City-based provider of balance sheet liquidity solutions and technology to banks and broker-dealers.
On December 20, 2021, Estancia announced that it had signed definitive agreements to acquire a majority stake in Reich & Tang, with Reich & Tang’s management team continuing to own a meaningful equity stake in the business going forward. Estancia plans to work with R&T’s management team to accelerate the company’s continued expansion within the fast-growing and dynamic cash management market.
“We are excited to partner with Estancia, with whom we have had a long-term relationship, on the Reich & Tang transaction” said Daniel Edelman, Managing Director of Flexpoint Ford. “R&T has a long and storied history in the balance sheet liquidity market and Estancia’s investment bolsters the company’s management team with the backing of a strong, like-minded financial sponsor to execute on its next phase of growth. We look forward to continuing to work with Estancia and R&T as both a capital provider and thought partner, particularly via additional investments to facilitate R&T’s growth initiatives.”
Takashi Moriuchi, Co-Founder and Managing Director of Estancia, added “Flexpoint’s deep sector knowledge, ability to creatively structure investments, and our confidence that they will be a value-added, collaborative partner were key factors in our decision to work with them.”
Flexpoint Ford’s preferred equity investment comes from Flexpoint Asset Opportunity Fund II. Asset Opportunity Fund leverages the firm’s focus and expertise in financial services private equity to invest in opportunistic investments across financial services subsectors and assets.
R&T is a registered service mark of Reich & Tang deposit Networks, LLC, and offers deposit and liquidity solutions to financial intermediaries around the country. Through its Demand Deposit Marketplace program, R&T provides banks with access to billions in reciprocal deposits and underlying customers with access to high levels of FDIC insurance through participating banks. R&T is the trusted vendor of large broker-dealers and other financial institutions that administers their insured cash sweep programs. The firm is focused on providing unmatched client service by creating, improving, and delivering smarter ideas to help banks, brokerages, trust/wealth managers, RIAs, and public and private sector companies maximize the value of their deposit, liquidity, and short-term investment programs.
Estancia is a specialist private equity firm focused on lower-middle market investments in Institutional Quality Asset Management, Wealth Management, Capital Markets Structure and related Business Services and Technology firms. Estancia’s Principals have a history of partnering with management teams, providing capital to facilitate strategic development of portfolio companies including management buy-outs, private ownership/succession transitions and growth initiatives. R&T will represent Estancia’s fifth portfolio investment in their sophomore fund Estancia Capital Partners, Fund II, L.P.