Wells Fargo nears deal to sell asset management unit

Wells Fargo & Co. is in talks to sell its asset management business to a private equity consortium led by GTCR and Reverence Capital Partners, according to a person familiar with the matter, as Chief Executive Charlie Scharf revamps the long-beleaguered bank.

The exact price under discussion couldn’t immediately be learned and the talks could still end without a deal, the person said, asking not to be identified discussing a private matter. The unit could fetch more than $3 billion, Bloomberg reported in October.

Representatives for Wells Fargo and Reverence declined to comment. GTCR didn’t immediately respond to requests for comment. The advanced talks were reported earlier Thursday by Reuters.

Reverence purchased broker-dealer network Advisor Group in 2019, and GTCR's investments include a stake in retirement plan adviser Captrust.

Scharf, who took the reins at Wells Fargo in late 2019, has been looking to sell certain businesses as he streamlines his company. The bank agreed to sell its $10 billion private student loan book to a group including Apollo Global Management Inc. and Blackstone Group Inc., and has been exploring selling its corporate trust and private-label credit cards business, Bloomberg has reported.

Earlier Thursday, Toronto-Dominion Bank said it’s purchasing Wells Fargo’s Canadian direct equipment finance business, which has about C$1.5 billion ($1.2 billion) in assets and 120 employees across Canada. Financial terms of that deal weren’t disclosed.