American banking major Wells Fargo is reportedly in discussions to offload its asset management arm to a private equity consortium led by GTCR and Reverence Capital Partners.
The deal price is currently not known, and the discussions could cease without a deal, a source familiar with the matter told Bloomberg Quint.
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The unit, which oversees more than more than $607bn in assets, is anticipated to bring over $3bn to the bank.
It is part of the bank’s wealth and investment management division and offers mutual funds and retirement products.
Wells Fargo, GTCR and Reverence did not comment on the news, according to the news agency.
The San Francisco-based lender has been on the lookout for asset management companies and private equity firms for a potential deal.
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By GlobalDataThe move to sell its asset management business is seen as part of the group’s revamp measures introduced by its current chief Charlie Scharf.
Scharf has been trying to turn around the group, which was caught up in major sales practices scandal, by cutting costs and divesting noncore businesses.
If realised, the deal would be the biggest shake-up under Scharf who joined the firm in 2019.
Meanwhile, Wells Fargo also agreed to divest its Canadian direct equipment finance business to Toronto-Dominion Bank this week.
Earlier this month, it was reported that Wells Fargo is withdrawing from international wealth management business in order to focus its efforts on serving wealthy investors in the US.
Last month, the lender said it will sell its private student loan portfolio to a group of investors.
In October last year, the reportedly more than 700 jobs as part of its previously announced multi-billion dollar cost-cutting measure.
