GTCR and Reverence Capital Partners LP have acquired Wells Fargo Asset Management from Wells Fargo & Co. WFAM is an asset management firm with more than $600 billion in assets under management and investment capabilities across diverse asset classes. GTCR and Reverence Capital will partner with the management, portfolio managers, and employees of WFAM to complete and fund the transaction. Under the terms of the agreement, the purchase price is $2.1 billion.
Capital Partners expects the transaction will strengthen WFAM’s position as an asset management firm and allow it to operate with the singular focus of best serving the needs of its global institutional, retirement, and wealth management clients. WFAM will continue to be led by CEO Nico Marais. Additionally, Joseph A. Sullivan will join the company as executive chairman.
Collin Roche, managing director of GTCR, said, “We are thrilled to work with Nico and the team at WFAM, and we have tremendous conviction in the caliber and capabilities of the management professionals and leadership team. The organization is poised to provide further innovation in the investment marketplace while continuing to deliver high quality products to its
clients. The team, underpinned by its diversity, client-orientation, and collaborative culture, has delivered strong performance, and we will work to reinforce these values and sustain this performance. Along with our partners at Reverence Capital, we are committed to the long-term success of the organization.”
Milton Berlinski, co-founder and managing partner of Reverence Capital Partners, added, “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.”
Broadhaven Capital Partners and UBS Investment Bank served as financial advisors to the buyers relative to the transaction, with additional financial advice rendered by RBC Capital Markets and Perella Weinberg Partners. Kirkland & Ellis LLP provided legal counsel.