Wells Fargo to Sell Wells Fargo Asset Management for $2.1 Billion -- Update
By Colin Kellaher
Wells Fargo & Co. Tuesday said it agreed to sell its Wells
Fargo Asset Management unit to private-equity firms GTCR LLC and
Reverence Capital Partners LP for $2.1 billion, as the San
Francisco bank continues its turnaround effort following a sales
Wells Fargo said it would retain a 9.9% stake in the unit, which
has $603 billion in assets under management and more than 450
investment professionals in 24 offices around the world.
Wells Fargo, which has roughly $1.9 trillion in assets, said the
sale reflects its strategy to focus on businesses that serve its
core consumer and corporate clients and would allow its wealth and
investment-management division to increase its focus on growing its
wealth and brokerage businesses.
Chief Executive Charles Scharf, who joined Wells Fargo in late
2019 from Bank of New York Mellon Corp. to restore the bank's
tarnished reputation, had previously said the bank would shed some
non-core businesses. Wells Fargo in December agreed to sell its $10
billion private student-loan portfolio.
Chicago-based GTCR and New York's Reverence Capital said they
will partner with the Wells Fargo unit's management, portfolio
managers and employees to complete and fund the transaction.
The firms said Joseph Sullivan, former chairman and chief
executive of asset manager Legg Mason Inc., will join Wells Fargo
Asset Management as executive chairman, while Nico Marais, who has
been CEO of the Wells Fargo unit since 2019, will stay in that
Wells Fargo said it expects to complete the sale of Wells Fargo
Asset Management in the second half, adding that it would remain a
client and distribution partner of the unit.
Write to Colin Kellaher at email@example.com
(END) Dow Jones Newswires
February 23, 2021 10:36 ET (15:36 GMT)
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