Wells Fargo & Co. WFC,
said Tuesday it had agreed to sell Wells Fargo Asset Management to private equity firm GTCR LLC and Reverence Capital Partners LP for $ 2.1 billion. The transaction is expected to be completed in the second half. The asset manager has $ 603 billion in assets under management, 24 offices globally and teams supported by more than 450 investment professionals, the company said in a statement. Wells Fargo will continue to hold a 9.9% stake in the company and will serve as a customer and distribution partner. Upon completion of the transaction, the new company will be rebranded. Nico Marais will remain CEO, as he has been since June 2019. Joseph A. Sullivan, former president and CEO of Legg Mason, will become executive chairman. Wells Fargo shares fell 0.5% premarket and down 22% in the last 12 months, while the S&P 500 SPX,
gained 16%.