now loading...
Wealth Asia Connect Middle East Treasury & Capital Markets Europe ESG Forum TechTalk
Asset Management / Wealth Management
Wells Fargo to sell asset management unit for US$2.1 billion
Deal with GTCR and Reverence Capital expected to close in second half
The Asset 24 Feb 2021

Wells Fargo & Company has agreed to sell its asset management unit to private equity firms GTCR and Reverence Capital Partners for US$2.1 billion. The sale, one of the largest asset management deals in a decade in terms of AUM, is expected to close in the second half of 2021, subject to customary closing conditions.

Wells Fargo Asset Management (WFAM) has US$603 billion in assets under management, 224 offices globally, and specialized investment teams supported by more than 450 investment professionals.

The transaction includes Wells Fargo Bank’s business of acting as trustee to its collective investment trusts and all related WFAM legal entities. As part of the deal, Wells Fargo will own a 9.9% equity interest and will continue to serve as an important client and distribution partner.

Barry Sommers, chief executive officer of Wells Fargo’s wealth & investment management division, says: “Operating as an independent firm, as a portfolio company of GTCR and Reverence Capital will provide numerous benefits to WFAM’s clients, employees, and strategic partners – including Wells Fargo. At the same time, this transaction reflects Wells Fargo’s strategy to focus on businesses that serve our core consumer and corporate clients, and will allow us to focus even more on growing our wealth and brokerage businesses.”

US-based GTCR and Reverence Capital have deep experience investing in the asset management space, and will provide WFAM with the resources and expertise to deepen its innovative investment solutions, according to a press statement. 

Upon closing of the transaction, the new, independent company will be rebranded. Nico Marais will remain as WFAM’s CEO, his role since June 2019. Joseph Sullivan, former chairman and CEO of Legg Mason, will be appointed as executive chairman of the board.

“This transaction represents a significant milestone in the growth and evolution of our firm,” says Marais. “Through this new partnership, our business will be even better positioned to execute our strategy and provide our clients with innovative products and solutions to help them reach their investment goals.”

Conversation
Hwee Chuan Loy
Hwee Chuan Loy
executive director, telecommunications, media and technology
DBS
- JOINED THE EVENT -
In-person roundtable
Beyond Covid: Emerging trends in a changing lending landscape
View Highlights
Conversation
David Ng
David Ng
deputy CEO, Singapore
CSOP Asset Management
- JOINED THE EVENT -
In-person roundtable
Asia and the future of funds
View Highlights