(Reuters) – Wells Fargo & Co is in exclusive talks to sell its asset management business, according to a private equity consortium led by GTCR LLC and Reverence Capital Partners LP, to raise more than $ 607 billion on behalf of clients Manages, which is familiar to people. matter.
The division will represent the biggest shake-up of a US bank after former Bank of New York Mellon chief executive Charles Scharf joined as CEO in 2019.
The exact price being negotiated could not be learned, but Reuters previously reported that Wells Fargo was seeking more than $ 3 billion for the unit.
Sources said that the negotiations could still end without a deal, as the matter was confidential.
Wells Fargo declined to comment. Chicago-based GTCR and New York-based Shraddha did not respond to requests for comment.
The sale of the asset management business is one of several steps taken by Scarf to start Wells Fargo after a year-old sales practices scandal. He is cutting costs and shedding noncore businesses. Earlier on Thursday, Wells Fargo announced a deal 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 is expected to unveil a new strategic plan for Sharf Bank.
Shraddha Capital, co-founded by Goldman Sachs alum Milton Berlinski, and GTCR have been active in acquiring business in the asset management sector.
In 2019, Reverence purchased 75% of Phoenix-based independent financial advisory firm Advisor Group Inc., while last year GTCR took a minor stake in Northwest Carolina’s Caprust Financial Advisors Rayley, a registered investment advisor for $ 1.25 billion.
Reporting by Joshua Franklin in Miami and David French in New York; And jonathan otis