Former Wilmington Trust CIT Division Rebranded as Great Gray Trust

The Wilmington Trust NA collective investment trust business has been rebranded under a new name and structure after its acquisition by private equity firm Madison Dearborn Partners LLC, according to a letter sent to customers on Saturday.

The Great Gray Trust Co. will continue to offer CIT investments to plan sponsors and retirement plan advisers after Wilmington Trust parent M&T Bank Corp. announced the sale of the division in December 2022.

“Although your current Wilmington Trust relationship will transition to Great Gray, it will include the same talented people, customized solutions, and quality service you have come to know and expect,” Rob Barnett, the company’s president and CEO, wrote in an email to customers. “As this newly formed company, we are committed to continuing to expand and evolve the retirement space and deliver innovative solutions to meet your evolving needs.”

CITs have been growing in popularity in recent years due to offering a lower-fee investment option than most mutual funds for defined contribution retirement plans. The pooled investment vehicles, which are held by a bank or trust, have overtaken mutual funds as the most prevalent investment vehicle in defined contribution savings plans, according to consultancy Callan’s most recent DC Index.

After the deal was announced on Monday, Great Gray Trust released a video on LinkedIn with text:

“Today we ‘take flight’ on this new venture, and we’re eager to see what the future holds within CIT innovation and beyond,” it stated.

Barnett also wrote to customers that the Great Gray team will remain in place in the transition. Part of that team’s work with CITs has included educating plan sponsors, plan advisers and lawmakers on the benefits of using the investments for retirement plans. Currently, 403(b) retirement plan providers are not able to access CITs, though there is a proposed bill in Congress seeking to permit the investments.

“While our branding is changing, our focus will always remain on taking a modernized and fresh approach to developing innovative solutions that drive results for our clients,” the letter stated.