Why Capital One Financial (COF) Is Buying TripleTree

By Amit Chowdhry ● Oct 16, 2021
  • Capital One Financial Corp. (NYSE: COF) announced recently it entered into a definitive agreement to buy TripleTree. This is why.

Capital One Financial Corp. (NYSE: COF) announced recently it entered into a definitive agreement to buy TripleTree, LLC, a leading investment banking advisory platform serving market-leading healthcare companies, headquartered in Minneapolis, MN, with offices in New York. And TripleTree will join Capital One Commercial Bank’s growing Capital Markets group, bringing deep focus and tailored expertise serving healthcare technology and services companies. Justin Roth, Head of Investment Banking, will continue to lead TripleTree.

Capital One Commercial Bank is known as a full-service bank with middle-market specialization in many industries, including over 40 healthcare sub-sectors. And in coming together, Capital One and TripleTree will create a differentiated healthcare platform that extends Capital One’s full-service capital markets and corporate banking capabilities to include TripleTree’s M&A advisory and investment banking capabilities – driving a broader positive impact to achieve significant outcomes for a wide range of healthcare clients.

With this deal, the two businesses comprising TripleTree Holdings, LLC will become two separate organizations. And TripleTree is joining the Capital Markets group of Capital One Commercial Bank as a wholly-owned subsidiary, operating under the current TripleTree brand and maintaining its offices in Minneapolis and New York. TTCP Management Services, LLC (TT Capital Partners) will continue as an independent, Minneapolis-based principal investor focused on healthcare technology and services.

 The deal is expected to close in the fourth quarter of 2021, subject to customary closing conditions.

KEY QUOTE:

“Now more than ever, it’s essential to provide our clients with best-in-class solutions, products and services. Capital One and TripleTree together are well-positioned to help our healthcare clients navigate the ever-changing external landscape at every stage of their business. As our two organizations join forces, we have the opportunity to expand our market presence, deepen our industry relationships and work collaboratively to identify and pursue new business opportunities to serve our clients’ needs.”

— Darren Alcus, Head of Capital One’s Corporate Bank

“Capital One and TripleTree have a shared philosophy of providing insights-driven counsel enabled by deep healthcare industry knowledge. Together, we’ll add scale and significant expertise to our Capital Markets group, benefitting clients in a wide variety of healthcare specialties.”

— Steve Tulip, Head of Capital Markets, Capital One Commercial Bank

“As two organizations with a passion for the healthcare industry and a commitment to deep relationships, the cultural alignment between TripleTree and Capital One creates real opportunity to serve clients in new and more meaningful ways. This combination will accelerate TripleTree’s growth trajectory and amplify our reach in the marketplace, reflecting our 20-year heritage as a leading healthcare investment bank.”

— Justin Roth, Head of Investment Banking at TripleTree