Wells Fargo & Co. WFC,
said Tuesday it has agreed to sell Wells Fargo Asset Management to private equity firms GTCR LLC and Reverence Capital Partners LP for $ 2.1 billion. The deal is expected to be completed 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 retain a 9.9% stake in the company and serve as a customer and distribution partner. Once the deal is closed, the new company will be renamed. Nico Marais will remain CEO, as he has been since June 2019. Joseph A. Sullivan, former chairman and CEO of Legg Mason, becomes executive chairman. Wells Fargo shares fell 0.5% in premarket and 22% in the past 12 months, while the S&P 500 SPX,
has won 16%.