Wells Fargo is selling its asset-management unit — which manages more than $603 billion — to private equity.
Wells Fargo (WFC) – Get Report said on Tuesday that it had agreed to sell Wells Fargo Asset Management for $2.1 billion to the private equity firms GTCR and Reverence Capital Partners.
Shares of the San Francisco financial-services company at last check were up 0.4% to $37.42.
The asset management unit has more than $603 billion in assets under management via 24 offices globally.
Wells Fargo said that after the deal closes, it will continue to own a 9.9% equity interest in the asset-management unit and continue to serve as a client and distribution partner.
The transaction is expected to close in the second half.
Nico Marais, who has been WFAM’s chief executive since June 2019, will continue in the post. Joseph Sullivan, former chairman and CEO of Legg Mason, will be appointed executive chairman of the new company.
Chicago-based GTCR was founded in 1980 and has invested more than $20 billion in over 250 companies. Reverence Capital Partners, New York was founded in 2013.
The sale represents the biggest shakeup at the U.S. bank since former Bank of New York Mellon CEO Charles Scharf joined as chief executive officer in 2019, according to Reuters.
In January, Wells Fargo agreed in January to sell its Canadian direct equipment finance business to Toronto-Dominion Bank.
Earlier this month, Bloomberg reported that federal officials informed the company that they had accepted the bank’s plan to overhaul its risk management and governance.
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Originally published at https://www.thestreet.com/investing/wells-fargo-to-sell-asset-management-unit-to-private-equity on .
