Allspring Global Investments, the asset management firm spun out of Wells Fargo in 2021, is reportedly exploring a sale that could value it at around $4 billion. This development comes two and a half years after it was acquired by private equity firms GTCR and Reverence Capital Partners for $2.1 billion. The private equity owners had previously indicated their intention to invest significant capital into the firm for growth, and a sale now would represent a substantial return on their investment.
Allspring, which manages $625 billion globally, had been actively seeking overseas acquisitions, particularly in Britain and other parts of Europe. CEO Kate Burke stated that scale mattered and the firm was looking for partners that could bring more to the table. Target areas for acquisition included expanding in global equities or opportunistic credit, with a focus on firms managing up to $20 billion in assets, or potentially more. Less than 10% of Allspring's assets are managed outside its home market, highlighting its interest in international expansion.
At the time of its sale from Wells Fargo, the asset manager had $603 billion in assets under management. Wells Fargo retained a 9.9% equity interest and continued as a client and distribution partner. The private equity firms, GTCR and Reverence Capital, planned to invest heavily in technology, distribution, and products, stating that the deal was not about cost savings. They aimed to grow Allspring to over $1 trillion in assets within five years by accessing more distribution channels than were available as a captive of Wells Fargo.
