Does anyone know if the recent sale of WFAM to PE Firms will warrant a name change? Unsure since Wells Fargo supposedly still has 9.9% invested in the company and will act as a distributer. What does this all translate to?
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Of course there will be a name change. That’ alone will be the best thing to happen to wfam in years.
That’s right. Whatever the Oracle of Omaha just said!
Yes there will be a name change, and Wells Fargo as a distributor just means that the funds of the new asset manager will be used and sold by advisors at WFA, money market funds used by corporate banking clients, etc.
The 9.9% Wells Fargo stake is below the 10% stake that is required to have sales be publicly announced. That 9.9% stake was at the request of the buyer so that Wells would be inclined to ensure a smooth transition. Wells Fargo could in a year sell out of their entire stake of the new firm and in their earnings report all they would report is something along the lines of “Capital gains of other balance sheet assets and investments: $260 million.” I’m sure that in about 16-24 months they will be out of the 9.9% position.