Wells Fargo sells asset management arm to private equity firms for $2.1 billion

(Reuters) - Wells Fargo & Co announced Tuesday that it had agreed to sell its wealth management business, which manages more than $ 603 billion on behalf of clients, to private equity for $ 2.1 billion Companies for sale GTCR LLC and Reverence Capital Partners.
The sale marks the biggest upheaval at the US bank since former Mellon top boss at the Bank of New York, Charles Scharf, joined as Chief Executive Officer in 2019.
Wells Fargo will own a 9.9% stake in the asset management unit and continue to act as a customer and distributor, the bank said.
Reuters, citing sources, reported in January that the bank was about to close a deal with the buyout companies. https://reut.rs/3keZKMa
The sale of the asset management business is in line with steps Scharf has taken to reverse Wells Fargo following a scandal over sales practices.
The bank agreed in January to sell its Canadian direct finance business to Toronto-Dominion Bank.
The transaction for the wealth management business is expected to close in the second half of 2021. Wells Fargo Securities acted as the exclusive financial advisor to Wells Fargo on the transaction.
(Reporting by Noor Zainab Hussain in Bengaluru; editing by Aditya Soni)
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