CIT Group Inc., the commercial lender led by John A. Thain that’s divesting units after last year’s bankruptcy, sold the Edgeview Partners investment bank back to its employees.
Edgeview had about 30 bankers advising on the sale of mid-sized companies in private equity deals across industries, Tim Whitmire, director of business development, said in an interview today. CIT acquired Charlotte, North Carolina-based Edgeview in July 2007 to expand beyond middle-market business lending and factoring of trade receivables.
“Our decision to divest Edgeview supports our ongoing efforts to streamline the cost structure of our corporate finance business,” said Curt Ritter, a spokesman for New York- based CIT. While CIT will no longer have a staff of banking generalists, its industry specialists will “continue to provide financial sponsors and middle-market companies a broad range of financial products and advisory services,” Ritter said.
Thain, the former leader of Merrill Lynch & Co., was hired Feb. 7 as CIT’s chief executive officer after the company emerged from bankruptcy.
The Edgeview sale was reported earlier by peHUB.com, a forum for the private equity industry.