StoneCastle Cash Management Reports Record First Quarter Results

In The Wake of Regulatory Reform, Financial Professionals Seek Alternatives for Their Cash

Reports Record First Quarter Asset Growth, Increased Net New Assets And Accounts

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Apr 21, 2015, 09:00 ET

NEW YORK, April 21, 2015 /PRNewswire/ -- StoneCastle Cash Management, LLC ("StoneCastle"), a recognized cash management leader, today announced its total assets surpassed $8 billion. "Our mission, to create innovative cash management solutions consistent with the needs and objectives of institutional treasury professionals and public fund managers, is even more critical as traditional vehicles become less attractive or even unavailable," says Steve Rotella, CEO of StoneCastle.

Business highlights for the first quarter ended March 31 include:

Increased total balances during the quarter by nearly $1.26B or 16%, a new quarterly record for the company
Exceeded $8 billion in assets, a 40% year on year increase from the first quarter of 2014
Expanded its proprietary StoneCastle Deposit Network to over 550 banks in all 50 states
Delivered additional liquidity options on its flagship product, the Federally Insured Cash Account (FICA^®)

"We are experiencing a revolution in the institutional cash space. Well-known money fund players are exiting prime money funds or are converting assets to lower yielding government funds. New Basel III rules are resulting in lower yields and higher fees for institutional depositors. In some cases, they are even being asked to take their deposits elsewhere. With nearly 70% of corporate cash in money funds and bank deposits, institutions and municipalities are looking for attractive alternatives," says Eric Lansky, President of StoneCastle.

"In the wake of money market reform, most financial professionals I speak with now consider liquidity to be their biggest concern. They want to know that their cash is safe and earning a competitive yield, but also readily available, particularly during periods of economic stress," says Brandon Semilof, Head of Institutional Sales and Managing Director of StoneCastle.

About StoneCastle Cash Management, LLC

StoneCastle Cash Management, LLC (www.StoneCastle.com) is a leading provider of cash management solutions for corporations, municipalities and other institutional entities. StoneCastle Cash Management, LLC is a wholly owned subsidiary of StoneCastle Partners, LLC, which was founded in 2003 and is one of the largest investors in community banks in the United States.

Disclosures:

The views expressed herein represent the opinions of StoneCastle and are not intended to predict or depict performance of any investment. It does not constitute an offer, solicitation or recommendation to purchase any security. Past performance does not guarantee future results. These views are as of the date of this release and are subject to change.

StoneCastle is not a bank, nor does it offer bank deposits, and its services are not guaranteed or insured by the FDIC or any other governmental agency. StoneCastle is an investment adviser registered with the SEC. For more information regarding the firm, please see its Form ADV Parts 1 and 2A on file with the SEC. Registration with the SEC does not imply a particular level of skill or training.

FICA® satisfies the FDIC requirements for agency pass-through deposit insurance coverage. FICA® is not a member of the FDIC, but the banks in which money is deposited are FDIC members. The FDIC is an independent agency of the U.S. government that protects the funds depositors place in FDIC insured institutions, up to $250,000 per institution. FDIC deposit insurance is backed by the full faith and credit of the U.S. government. If a participant has cash at any depository institution independently from the FICA® program that is in the FICA® network, then they may not receive full FDIC insurance coverage on deposits at those institutions. Funds may be submitted for deposit only after a depositor enters into a FICA® agreement.

FICA® is a service mark of StoneCastle.

SOURCE StoneCastle Cash Management, LLC