Wells Fargo sheds $2 billion of private equity bets to focus on core businesses

Wells Fargo announced on Friday that it had divested about $2 billion worth of its investments in private equity funds managed by Norwest Equity Partners and Norwest Mezzanine Partners. The bank said that the move was part of its strategic efforts to concentrate on its main businesses and customers.

The private equity investments were bought by a consortium of buyers that included AlpInvest Partners, a unit of Carlyle Group, Atalaya Capital Management, Lexington Partners and Pantheon, Wells Fargo said. Lazard acted as the financial advisor to Wells Fargo on the deal.

The sale comes as lenders are trying to streamline their operations and reduce their exposure to non-core activities, amid the economic uncertainty caused by the Federal Reserve’s policy actions. Wells Fargo CFO Mike Santomassimo said that the transaction reflects the confidence in the bank’s business, strategy and profitability.

Kristy Fercho appointed as the new head of Wells Fargo Home Lending

Leave a Reply

Your email address will not be published. Required fields are marked *