Wells Fargo’s spinoff of asset management business gives Charlotte a new corporate HQ
Wells Fargo has officially spun off its asset management business.
The new firm, Allspring Global Investments, started operating as an independent firm on Monday,Allspring said in a news release. The company said it will be headquartered in Charlotte.
Wells Fargo announced last February that it would sell the business, part of CEO Charlie Scharf’s plan to slim down the sprawling bank. Private equity firms GTCR and Reverence Capital Partners bought the business for $2.1 billion.
Established in 1995, Wells Fargo Asset Management was chiefly the bank’s mutual fund business. It was separate from Wells Fargo’s private bank and Wells Fargo Advisors, which offers investment advice and planning.
The newly independent Allspring manages more than $587 billion in assets and has more than 1,400 employees, according to the company’s news release. It also has more than 18 offices around the globe.
Allspring’s CEO is Joseph Sullivan. Sullivan was previously CEO of Legg Mason Inc., a Baltimore-based asset management firm. The company was acquired by Franklin Templeton, an investment management company, in 2020.
Allspring will have approximately 120 employees in Charlotte, a spokesperson confirmed. The press release listed the firm’s future address as 1415 Vantage Park Drive, the west tower of a new mixed-use development called Vantage South End.
Wells Fargo will still hold a 9.9% stake in the business and will continue to serve as a client and distribution partner to Allspring, the news release said.
Asset management hasn’t been the only department affected by broad changes at Wells Fargo. In March, the bank folded its Abbot Downing wealth management brand for the ultra-rich into its larger private bank.
Wells has also continued to cut costs across its consumer banking operations this year, closing 433 branches and reducing its branch employee headcount by 23%.
This story was originally published November 1, 2021 at 6:02 PM.
