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 clients, to an equity consortium private led by GTCR LLC and Reverence Capital Partners LP, according to people familiar with the matter. The divestiture would represent the largest reorganization of the US bank since former Bank of New York Mellon (NYSE 🙂 CEO Charles Scharf joined as CEO in 2019. The exact price being negotiated was not known, but Reuters previously reported that Wells Fargo was seeking more than $ 3 billion for the unit. The talks could still end without an agreement, said the sources, who requested 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 Scharf took to turn Wells Fargo around after a years-long sales practices scandal. You’ve been cutting costs and eliminating side businesses. Earlier Thursday, Wells Fargo announced an agreement 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 present a new strategic plan for the bank. Reverence Capital, co-founded by Goldman Sachs (NYSE 🙂 alumnus 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 acquired a minority stake in Raleigh, CAPTRUST Financial Advisors of North Carolina, which valued the investment adviser recorded at $ 1,250 million.
Exclusive: Wells Fargo Closes Deal with Acquisition Firms for Asset Management Businesses
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