Wells Fargo & Co. WFC,
said Tuesday it agreed to sell Wells Fargo Asset Management to private equity firm GTCR LLC and Reverence Capital Partners LP for $ 2.1 billion. The deal is expected to close in the second half. The asset manager has $ 603 billion in assets under management, 24 offices worldwide and teams backed by more than 450 investment professionals, the company said in a statement. Wells Fargo will continue to have a 9.9% stake in the company and will act as a customer and distribution partner. Once the deal is closed, the new company will change brands. Nico Marais will continue to be CEO, as he has been since June 2019. Joseph A. Sullivan, former chairman and CEO of Legg Mason, will become executive chairman. Shares of Wells Fargo fell 0.5% ahead of the market and fell 22% in the last twelve months, while the S&P 500 SPX,
has gained 16%.