Wells Fargo to shed asset manager

 — 1 minute read

Wells Fargo & Company has entered into an agreement to sell its asset management arm for US$2.1 billion ($2.6 billion). 

The deal, which will see Wells Fargo Asset Management (WFAM) sold to private equity firm GTCR and investment company Reverence Capital Partners, is expected to close in the second half of the year, subject to conditions.

Wells Fargo will retain a 9.9 equity interest and continue to serve as a client and distribution partner.


The asset management business looks after US$603 billion ($760.5 billion) in assets under management, employing more than 450 investment professionals.

Barry Sommers, chief executive of Wells Fargo’s wealth and investment management division, commented the move will allow the unit to operate as an independent firm. Upon closure of the deal, WFAM will be renamed.

“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,” Mr Sommers said. 

Nico Marais, CEO of WFAM will remain boss of the business, while former Legg Mason chair and CEO Joseph Sullivan will be appointed as its chairman.

“This transaction represents a significant milestone in the growth and evolution of our firm,” Mr Marais said. 

“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.”

Milton Berlinski, co-founder and managing partner of Reverence Capital added for its next phase of growth, WFAM will be positioning to “expand on its solution-based approach, multi-asset offerings, retail separately managed accounts and customised investment products”.


Wells Fargo to shed asset manager
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].


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