Reverence Capital Partners and GTCR will acquire the asset management unit of Wells Fargo, WFAM, for $ 2.1 billion, media reports said. It is reported that WFAM’s management, portfolio managers, and employees will support GTCR and Reverence Capital Partners to fund and complete the transaction.
Once the transaction is completed then Wells Fargo will hold a 9.9 percent equity interest and will continue to serve as a vital client and distribution partner. The acquisition is expected to be completed by the second half of this year, subjected to regulatory approvals and other procedures. Wells Fargo Securities is the financial advisor for the acquisition.
Wells Fargo, in January, planned to disinvest its Canadian direct equipment finance business to Toronto-Dominion Bank. WFAM holds over $600 billion in assets under management and investment capabilities across a wide range of asset classes. The new deal will bolster its position as a high-performing asset management company.
GTCR was incorporated in 1980 and is a private equity lending company that invests in companies related to segments such as fintech, media and telecommunications and growth business services industries.
Milton Berlinski, co-founder and managing partner of Reverence Capital, told the media, “We are very enthusiastic about this exceptional opportunity to partner with such talented investment professionals and to create an independent company that will grow over the long term and further enhance its innovative products and creative solutions for its clients. As an independent organization, WFAM will pivot to the next phase of its growth and is positioned to expand on its solutions-based approach, multi-asset offerings, retail separately managed accounts, and customized investment products.”