Wells Fargo has agreed to divest its majority stake in The Rock Creek Group to its management for an undisclosed sum.
The deal is expected to be completed by the end of August this year.
Since December 2012, RockCreek has been an affiliate of Wells Fargo Funds Management (WFAM). At that time, WFAM purchased 35% stake in RockCreek.
In April 2014, WFAM increased its equity ownership to a majority interest of 65% in RockCreek.
Under the latets deal, RockCreek’s management has agreed to acquire the 65% of the firm currently owned by Wells Fargo, taking management’s total ownership to 100%.
RockCreek said the decision was made by senior management at both firms and reflects their shared view that the deal supports each firm’s strategic direction.
The portfolio managers of RockCreek invest directly in emerging and frontier markets and alternatives, and its asset allocation teams manage the firm’s multi-asset class, OCIO and customized solutions.
The company primarily focuses on the integration of environmental, social, and governance (ESG) and impact analysis across its sustainable portfolios to yield long-term profits.
RockCreek has increased the number of partners within the firm over the last five years, as well as doubled its assets from around $7bn to $14bn.
RockCreek CEO and founder Afsaneh Beschloss said: “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.
“We are proud of the long-term partnership with our clients and their trust in our team and remain committed to delivering superior performance.”
Part of the Wells Fargo Wealth and Investment Management, the WFAM has $497bn in assets under management and manages 29 autonomous investment teams with more than 500 investment professionals.