Updated with correction
Wells Fargo Asset Management announced Thursday it will sell the 65% majority stake it holds in Rock Creek Group back to the firm's founder and CEO, Afsaneh M. Beschloss, and other executives of the hedge funds-of-funds and alternative investment manager.
Details of the transaction, which is expected to close by the end of August, are not being disclosed, said Sarah Kerr, a spokeswoman for Wells Fargo Asset Management.
A.J. Jones, a spokesman for Rock Creek Group, declined to comment about the specifics of the transaction.
The decision to split up their 6-year-old relationship was made jointly by senior management of WFAM and Rock Creek Group, a Wells Fargo news release said.
WFAM initially took a 35% ownership stake in December 2012 and raised its ownership percentage in April 2014 to 65%.
Rock Creek is the subadviser for WFAM's $143 million Alternative Strategies Fund, a mutual fund. Ms. Kerr said executives from both firms are discussing whether Rock Creek will continue to manage assets for WFAM and other administrative matters.
"We are confident that the broad-based independent ownership of our experienced team, coupled with our firm's data-driven technology and innovative culture will ensure that we continue to preserve and grow our investors' capital," said Ms. Beschloss in a Rock Creek news release.
Wells Fargo Asset Management managed $497 billion as of March 31, Ms. Kerr said.
Rock Creek Group managed $12.4 billion with discretion and $950 million on an advisory basis as of Dec. 31, according to the firm's most recent ADV investment adviser disclosure form filed with the Securities and Exchange Commission.