Allspring Global Investments (Allspring) is a global

asset management Asset management is a systematic approach to the governance and realization of all value for which a group or entity is responsible. It may apply both to tangible assets (physical objects such as complex process or manufacturing plants, infrastr ...

firm headquartered in

Charlotte, North Carolina Charlotte ( ) is the List of municipalities in North Carolina, most populous city in the U.S. state of North Carolina and the county seat of Mecklenburg County, North Carolina, Mecklenburg County. The population was 874,579 at the 2020 United ...

. It was previously the asset management unit of

Wells Fargo Wells Fargo & Company is an American multinational financial services company with a significant global presence. The company operates in 35 countries and serves over 70 million customers worldwide. It is a systemically important fi ...

until November 2021 when it commenced operations as an independent firm.

History

Allspring Global Investments was originally the asset management unit of

known as Wells Fargo Asset Management (WFAM) that was established in 1995. In October 2020, Wells Fargo was exploring the sale of WFAM as part of its efforts to focus more on core competencies and improve its financial performance after the

Wells Fargo cross-selling scandal The Wells Fargo cross-selling scandal was caused by creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent or knowledge due to aggressive internal sales goals at Wells Fargo. News ...

. At the time, WFAM had $607 billion in

assets under management In finance, assets under management (AUM), sometimes called fund under management, refers to the total market value of all financial assets that a financial institution—such as a mutual fund, venture capital firm, or depository institutio ...

as of September 30, 2020, and produced an annual revenue of $1 billion. The businesses under WFAM such as Analytic Investors, Galliard Capital Management, and Golden Capital Management were included as part of the sale. On February 23, 2021, Wells Fargo announced that it agreed to sell WFAM to

private equity firm A private equity firm or private equity company (often described as a financial sponsor) is an investment management company that provides financial backing and makes investments in the private equity of a Startup company, startup or of an existin ...

GTCR GTCR LLC is a Chicago, Illinois-based private equity firm focused on leveraged buyout, leveraged recapitalization, growth capital and rollup transactions. The firm principally invests in high-growth industries, including financial services & te ...

and Reverence Capital Partners for $2.1 billion. Wells Fargo would keep a 9.9% stake in the unit and would continue as a client and distribution partner. Over 20% of the unit would be owned by employees. Nico Marais, the CEO of WFAM would continue his role leading the unit and Joseph Sullivan, the former CEO of

Legg Mason Legg Mason, Inc. was an American investment management and asset management firm headquartered in Baltimore, founded in 1899 and acquired by Franklin Templeton Investments as of July 2020. As of December 31, 2019, the company had $730.8 billion i ...

would join as executive chairman. It was believed that WFAM would be able to operate and grow more effectively on its own rather than as part of a bank that is more regulated. On November 1, 2021, the transaction was completed. WFAM officially rebranded as Allspring Global Investments and commenced operations as independent firm. Marais retired from his post as CEO and was succeeded by Sullivan. In October 2022, Allspring moved its headquarters from

San Francisco San Francisco, officially the City and County of San Francisco, is a commercial, Financial District, San Francisco, financial, and Culture of San Francisco, cultural center of Northern California. With a population of 827,526 residents as of ...

to Charlotte. According to its own statement, Charlotte was selected for its business friendly environment and was also considered an important

financial centre A financial centre (financial center in American English) or financial hub is a location with a significant concentration of commerce in financial services. The commercial activity that takes place in a financial centre may include banking, ...

on the east coast.

References

External links

* {{Major asset management companies Wells Fargo Companies based in Charlotte, North Carolina American companies established in 2021 Corporate spin-offs Financial services companies of the United States Investment management companies of the United States 2021 establishments in North Carolina Asset management companies