Wells Fargo is to sell its asset management arm to private equity firms GTCR and Reverence Capital Partners for $2.1 billion (€1.7 billion).
The sale of Wells Fargo Asset Management (WFAM), which has $603 billion in assets under management, will see Wells Fargo take a 9.9% equity interest while continuing to serve as a distribution partner.
WFAM’s current chief executive, Nico Marais, will remain at the helm alongside the current leadership team who will continue to oversee the running of the business.
The deal is expected to close in the second half of this year, at which point Joseph A. Sullivan, former chairman and chief executive of Legg Mason, will also be appointed as executive chairman of the board.
Marais said: “This transaction represents a significant milestone in the growth and evolution of our firm. 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.”
GTCR and Reverence Capital, based in Chicago and New York respectively, will aim to grow WFAM’s existing business. Once the sale is complete, WFAM will be rebranded.
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