EconomyMarkets

Exclusive: Wells Fargo close to deal with buyout firms for asset management business

© Reuters. Wells Fargo Bank branch is seen in New York

By Joshua Franklin and David French

(Reuters) – Wells Fargo (NYSE:) & Co is in exclusive talks to sell its asset management business, which manages more than $607 billion on behalf of customers, to a private equity consortium led by GTCR LLC and Reverence Capital Partners LP, according to people familiar with the matter.

The divestment would represent the U.S. bank’s biggest shake-up since former Bank of New York Mellon (NYSE:) Chief Executive Charles Scharf joined as CEO in 2019.

The exact price being negotiated could not be learned, but Reuters previously reported that Wells Fargo was seeking more than $3 billion for the unit.

The talks could still end without a deal, the sources said, requesting anonymity because the matter is confidential.

Wells Fargo declined to comment. Chicago-based GTCR and New York-based Reverence did not respond to requests for comment.

The sale of the asset management business is one of many steps taken by Scharf to turn Wells Fargo around following a years-old sales practices scandal. He has been cutting costs and shedding noncore businesses. Earlier on Thursday, Wells Fargo announced a deal to sell its Canadian direct equipment finance business to Toronto-Dominion Bank.

Last month, Wells Fargo said it would sell its private student loan portfolio to a group of investors.

The bank is scheduled to report fourth-quarter earnings on Friday, and Scharf is expected to unveil a new strategic plan for the bank.

Reverence Capital, co-founded by Goldman Sachs (NYSE:) alum Milton Berlinski, and GTCR have been active in acquiring businesses in the asset management sector.

In 2019, Reverence bought 75% of Phoenix-based independent financial advisory firm Advisor Group Inc, while last year GTCR took a minority stake in Raleigh, North-Carolina’s CAPTRUST Financial Advisors, which valued the registered investment adviser at $1.25 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button