Earlier this year, US investment bank Wells Fargo agreed to sell its asset management arm to GTCR and Reverence Capital for $2.1 billion, allowing the bank to shift its attention on to its wealth and brokerage businesses.

Following the completed transaction, Wells Fargo Asset Management will now operate under its new name, Allspring Global Investments.

Allspring has more than $587 billion in assets under management as well as investment capabilities spanning across diverse asset classes and will operate across 18 offices globally.

Following the acquisition, the asset manager plans to locate its headquarters in Charlotte, North Carolina.

“We recognise that investor expectations in today’s world go beyond simply delivering alpha. Our commitment will be a continued focus on providing exceptional value to clients by elevating our investment platform and operating model,” said Joseph A. Sullivan, executive chair and chief executive of Allspring.

“With the strong support of our partners, GTCR and Reverence Capital, we are poised to capitalise on the many current opportunities before us and we see tremendous potential to expand our reach into new markets and capabilities.”

Alongside GTCR and Reverence Capital’s majority ownership, management, portfolio managers and employees of Allspring hold a significant share of the firm’s equity interests.

Wells Fargo & Co. will maintain 9.9% equity interest in the new entity and continue to act as an important distribution partner and client to Allspring.

“Independence provides the organisation with a unique opportunity to expand its leadership position in the asset management industry,” said Collin Roche, co-CEO and managing director of GTCR and Milton Berlinski, co-founder and managing partner of Reverence Capital.

“We have great confidence in Joe Sullivan and the entire leadership team as they differentiate Allspring in the marketplace by ensuring that the firm is an essential partner to its private wealth and institutional clients. We will be investing significantly in the business to grow strategic areas, including the technology platform, the distribution network, and the firm’s international footprint.”

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Wells Fargo Asset Management is set to rebrand as Allspring Global Investments under its new CEO upon closure of its acquisition by GTCR and Reverence Capital Partners.

US investment bank Wells Fargo agreed to sell off its asset management arm to the private equity firms for $2.1 billion in February as it looked to refocus its attention on its wealth and brokerage businesses.

The transaction and name change will be completed in the second half of this year subject to customary closing conditions, Wells Fargo said.

Joseph Sullivan, the former CEO of Legg Mason, the asset management arm of Franklin Templeton, has also been named CEO of Allspring Global Investments.

Wells Fargo confirmed in February that Sullivan would become executive chairman upon closure of the acquisition. He will be CEO in addition to his role as executive chairman, and succeeds Wells Fargo Asset Management’s current CEO, Nico Marais, who will become a senior advisor to the firm.

Sullivan brings more than 40 years of industry experience to the role having most recently served as CEO and chairman at asset manager Legg Mason for eight years until its acquisition by US investment management firm Franklin Templeton in 2020.

“In spending time with Nico and the organisation over the past few months, I have been incredibly impressed by the depth of investment expertise and quality of our people and leadership,” said Sullivan. “Our new name truly embodies a renewed corporate culture and commitment to continue to invest thoughtfully and partner with our clients to navigate the future.” 

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US bank Wells Fargo has agreed to offload its asset management arm to private equity firms GTCR and Reverence Capital Partners for $2.1 billion as it looks to focus on its wealth and brokerage businesses.

Following the closure of the deal, Wells Fargo will maintain a 9.9% equity interest in the new entity, which will also be rebranded.

The transaction is expected to close in the second half of this year and remains subject to closing conditions. Wells Fargo Asset Management (WFAM) has $603 billion in assets under management and 24 offices globally. 

WFAM’s current chief executive, Nico Marais, who took up the role in June 2019 after two years as head of multi-asset solutions, will continue to oversee the business as CEO. Former chairman and chief executive of wealth management firm Legg Mason, Joseph Sullivan, will also become executive chairman of the board upon closure of the transaction.

“Operating as an independent firm as a portfolio company of GTCR and Reverence Capital will provide numerous benefits to WFAM’s clients, employees, and strategic partners — including Wells Fargo,” said Barry Sommers, CEO of Wells Fargo’s wealth & investment management division. 

The transaction reflects the bank’s strategy to focus on its more profitable businesses, including wealth management and broking, under chief executive Charles Schwarf, who has been leading Wells Fargo as CEO since October 2019.

Sommers added that the deal will also allow Wells Fargo to focus on serving its core consumer and corporate clients.

“We are thrilled to work with Nico and the team at WFAM, and we have tremendous conviction in the calibre and capabilities of the management professionals and leadership team,” said Collin Roche, managing director of GTCR. “The organisation is poised to provide further innovation in the investment marketplace while continuing to deliver high-quality products to its clients.”

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Marais has been serving as interim co-CEO at Wells Fargo alongside Kirk Hartman, currently chief investment officer, since Mitchem left the business in January to head up BMO Global Asset Management as chief executive.

In a statement, Wells Fargo said that Marais will oversee the asset management unit as sole CEO effective immediately, working closely with Hartman. Hartman will remain as chief investment officer and has also been named president of Wells Fargo Asset Management.

“I am excited and honoured by the opportunity to help lead Wells Fargo Asset Management into the future,” Marais commented on his appointment. “The experience and talent at our firm is second to none, and I look forward to working with all of our amazing team members to do even more for our clients.”

Marais joined Wells Fargo Asset Management as president and head of multi-asset solutions in 2017 from Schroders, where he held a similar role as head of multi-asset investments and portfolio solutions. He has also worked for BlackRock, Barclays Global Investors and The World Bank Group.

“We have an outstanding team at Wells Fargo Asset Management, and I am confident that Nico is the right leader to take the business forward as it continues to grow and serve as a true partner to our clients,” said Jonathan Weiss, head of wealth and investment management at Wells Fargo.

“Wells Fargo Asset Management is a key part of our overall strategy, and the business has a long track record of delivering innovative solutions and ideas to help our clients achieve their financial goals.”

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Wells Fargo Asset Management has appointed a new global head of research within its multi-asset solutions team.

Industry veteran Wai Lee joins the investment firm from Neuberger Berman where he has worked for the past 14 years, most recently as head of quantitative investments.

Prior to that Lee was head of the quantitative engineering group at Credit Suisse Asset Management, after joining the company in 2000 from JP Morgan Investment Management.

During his time at JP Morgan, Lee was in charge of quantitative research and risk management for the global group.

“[Lee] brings a depth of experience that will be an important dimension as we continue to build out our systematic platform of global multi-asset and solutions capabilities across alphas, betas, and asset classes,” said Nico Marais, president and head of multi-asset solutions.

“He also will play a key role in supporting our firm’s strategic partnerships, working with the solutions team in the design and delivery of customised investment solutions to investors around the globe.”

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