Wells Fargo brings $1bn tranche to market – exclusive

The bank is preparing to sell the second part of a portfolio of diversified private equity stakes in a process run by Greenhill Cogent.

Wells Fargo is preparing to sell a second tranche of private equity stakes, worth about $1 billion.

A first tranche, worth an undisclosed amount, was sold last year. The San Francisco-headquartered bank is now preparing to sell a second slice of its private equity stakes in a process run by Greenhill Cogent, according to four sources familiar with the matter.

The portfolio reflects around 300 diversified funds, according to three of the sources.

Financial institutions took a break from selling on the secondaries market last year, accounting for about 10 percent of deals in both value and volume, the first time financial institutions have represented less than 25 percent of total market volume in the last four years, according to a report by Greenhill Cogent.

Industry sources say banks will return as sellers this year to comply with the Volcker Rule – which limits US banks’ balance sheet investment in private equity – by its July 2017 deadline.

Wells Fargo and Greenhill Cogent declined to comment.