Alex. Brown, Pa. firm start venture

November 24, 1992|By Timothy J. Mullaney | Timothy J. Mullaney,Staff Writer

Alex. Brown Inc. said yesterday that it would join a Philadelphia-based trust management firm to create a joint venture to manage trusts and other assets for wealthy individuals and institutions.

Alex. Brown and the Glenmede Corp. would each own half of the joint venture, to be known as Chesapeake Advisory & Trust Holdings Inc.

Its first operations are expected to open in the spring and would initially be based at Alex. Brown's Baltimore headquarters. The joint venture is expected to have offices near Alex. Brown offices throughout the United States.

Chesapeake would counsel clients with $3 million or more to invest on financial planning, asset allocation, and investment management services as well as traditional trust services, such as estate and trust administration, the two companies said.

Chesapeake would maintain its own staff but offer investment products that are also offered by its two corporate parents.

The merger meets a goal for each side: Glenmede, a trust and investment company with more than $7 billion under management, wants to take its trust business into geographic markets where Alex. Brown has offices; Alex. Brown wants to expand into another way of serving individuals who run the companies that are Alex. Brown's investment banking clients.

Alex. Brown spokeswoman Jami McDonald said the company believes helping entrepreneurs manage their personal gains was a natural extension of its existing business.

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