Wells Fargo & Co’s (NYSE:WFC) asset management subsidiary announced Thursday that it was selling its majority stake in RockCreek Group back to the company's high-profile hedge fund founder and CEO Afsaneh Beschloss and the Rock Creek management team.
Wells Fargo Asset Management, owned by Wells Fargo, declined to comment about the specifics of the transaction beyond the fact that it will sell the 65% majority stake it holds in the Rock Creek Group.
The decision to split up their six-year-old relationship was made jointly by senior management at both Wells Fargo and RockCreek, Wells Fargo said in a statement.
“We are confident that the broad-based independent ownership of our experienced team, coupled with our firm’s data-driven technology and innovative culture will ensure that we continue to preserve and grow our investors’ capital,” said Afsaneh Beschloss, CEO and founder of the RockCreek Group.
The transaction is expected to be completed by the end of August.
Following the close of the transaction, the RockCreek Group will be majority owned by women and a diverse group of professionals.
The hedge fund currently has close to US$14bn in assets under management primarily in emerging and frontier markets. Beschloss, who heads up RockCreek was previously the chief investment officer of the World Bank.
Wells Fargo Asset Management initially took a 35% ownership stake in Rock Creek in December 2012 and raised its ownership percentage in April 2014 to 65%.