Wells Fargo divests $2bn of private equity investments to leading investors

Wells Fargo & Company (NYSE: WFC) has made a strategic move by divesting approximately $2 billion of private equity investments from select Norwest Equity Partners (NEP) and Norwest Mezzanine Partners (NMP) funds. This decision marks a significant step as Wells Fargo previously held the position of sole institutional limited partner in these funds. The buyer consortium for Wells Fargo’s positions features prominent investors, including AlpInvest Partners (a subsidiary of Carlyle), Atalaya Capital Management, Lexington Partners, and Pantheon.

Wells Fargo’s Chief Financial Officer, Mike Santomassimo, stated, “With this transaction, we are continuing with our strategic efforts to focus on Wells Fargo’s core businesses and customers,” underscoring the bank’s commitment to streamline its operations and priorities.

Wells Fargo divests $2bn of private equity investments to leading investors. Photo courtesy of Wells Fargo.

Tim DeVries, Managing Partner at NEP, expressed gratitude, saying, “We are incredibly grateful to Wells Fargo for their long-term partnership and continued support,” highlighting the enduring relationships forged in the financial landscape.

Lazard Ltd played a pivotal role as the financial advisor to Wells Fargo throughout the course of this transaction.

In a separate development, Wells Fargo intends to maintain its relationship and investments with Norwest Venture Partners, a well-regarded venture capital and growth equity investment firm. This underscores Wells Fargo’s commitment to nurturing strategic partnerships and alliances within the financial industry.