PFM Acquires Scott Balice Strategies

PHILADELPHIA, May 16, 2011 /PRNewswire/ -- PFM Group, the nation's leading provider of independent financial advisory services to state and local governments and their agencies, announced today that it has acquired Chicago-based Scott Balice Strategies LLC. The acquisition positions PFM as a leader with Midwest clients, large state and local governments, and as experts in the emerging field of public-private partnerships (P3s).  With the move, PFM will also launch a corporate advisory practice under the direction of Dean Balice, co-founder of Scott Balice.

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"This acquisition represents a significant step forward in PFM's ongoing expansion, and we are delighted to add the professionals of Scott Balice Strategies to a very strong cadre of industry leaders at PFM Group," said  F. John White, Managing Director and Chief Executive of PFM.  "Their firm has shown outstanding growth since its founding just eight years ago, and we are confident they will add significant value for PFM and our clients. The contribution of their talented group can only help solidify PFM's position as a national leader in municipal advisory, public/private partnerships, and investment management," he added.

Scott Balice was established by Lois Scott and Dean Balice in early 2003 to provide strategic financial advice to government, nonprofit and corporate clients.  The firm has grown rapidly to include offices in Chicago, New York, New Jersey, Anchorage and Ohio.  It has earned a national reputation in the field of public-private partnerships, including landmark assignments relating to toll roads, parking structures, lotteries, social infrastructure and state-owned alcohol beverage control systems.  According to Thomson Reuters, Scott Balice was ranked tenth nationally among independent financial advisors, second in the Midwest, and first in Illinois for 2010. Senior partner Lois Scott, co-founder and president of Scott Balice, has been named Chief Financial Officer of the City of Chicago for the incoming administration of Mayor Rahm Emanuel and will be sworn in on Monday. She will be severing all ties with her former firm.

Lois Scott, while looking forward to her new position with the incoming Emanuel administration, praised her colleagues and her former competitor. "The financial needs and complexity of the government and nonprofit sector have never been greater," she noted,  "and it is essential that we bring the very best resources to serve those needs.  The combination of PFM and Scott Balice will preserve the culture of service, creativity, expertise and professionalism for which both firms are known, while making a broader range of expertise and resources available to all clients," she said.

"We have admired the work of the Scott Balice team for many years.  They have proven their ability to tackle the toughest financing challenges and provide highly effective financing solutions," Mr. White added.  "We look forward to leveraging their expertise to continue bringing the best ideas and highest quality of service to our clients throughout the nation," he continued.

Those comments were echoed by PFM Managing Director Jill Jaworski, who heads up PFM's Chicago practice and will lead the integration of the two firms. "The Scott Balice firm is well-known and respected, not just in Chicago and the Midwest, but throughout the country," she noted. "PFM's Midwestern presence has grown considerably in the past two years, and we believe the acquisition of this major player in many of our markets will help to further expand PFM's national footprint."

As part of the transaction, Tim Carden, Julia Harris and Tom Morsch will be named Managing Directors of PFM Group and tasked with enhancing PFM's Public-Private Partnership practice.  "Their relationships with leading investors, their expertise across a broad range of asset classes, and their hands-on transaction experience is second to none, and we are pleased to have them join our team," John White concluded.  PFM intends to operate Scott Balice as a wholly owned subsidiary of PFM Group, with Dean Balice continuing as a Managing Director of the subsidiary.

Public Financial Management, Inc., part of the PFM Group companies, was the top-ranked independent financial advisory firm in the nation in almost every major category at March 31, 2011, according to Thomson-Reuters, advising on more than $5 billion of total debt in 119 separate transactions during the first quarter of this year alone. Since its founding in 1974, PFM has provided independent financial advisory services to local, state, and regional government and non-profit clients throughout the United States in their dealings with the capital markets. PFM Asset Management LLC (PFMAM), also part of the PFM Group of companies, is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. PFMAM had $42.0 billion in assets under management and provided investment consulting services for an additional $19.9 billion in securities as of March 31, 2011. PFM's clients are state and local governments, non-profit corporations, pension funds, and similar institutional investors. The PFM Group of companies also provides best practices strategic consulting and pension advisory consulting services and currently employs more than 440 individuals serving a broad base of clients from locations in every region of the country.

SOURCE PFM Group