Under the terms of a December 2012 partnership agreement between the two firms, Wells Fargo Asset had an option to increase its equity ownership to a majority stake in the hedge funds-of-funds specialist, said Laura Fay, a spokeswoman for Wells Fargo. She said the firm has the option to further increase its ownership stake, but she could not provide specifics.
“This change is a sign of Wells Fargo's continued commitment to — and investment in — The Rock Creek Group, but it will in no way affect the management, independent culture, investment process and brand identity of the firm,” a Wells Fargo statement provided by Ms. Fay said.
Afsaneh M. Beschloss, Rock Creek Group's founder, CEO and president, could not be reached for comment because she was traveling.
In meeting materials for Wednesday's meeting of the New Jersey State Investment Council, investment staff of the Division of Investment said they will consent to the transaction because “it will not affect the management of our investment in RC Woodley Park LP.”
The division has invested a total of $750 million in Rock Creek's RC Woodley Park strategy that has a special focus on emerging hedge funds, according to the meeting memo. The investment division manages $76.8 billion for the New Jersey Pension Fund.