Wells Fargo & Co. said Tuesday that it has acquired a minority stake in a hedge fund firm, Rock Creek Group, as it seeks to give customers more investment options.
Rock Creek has about $7 billion in assets under management. It helps its customers — pension funds, foundations and other big investors — invest in hedge funds. The company's CEO and founder, Afsaneh Beschloss, is a former treasurer and chief investment officer of the World Bank. She will continue to lead the 50-member Rock Creek team.
Wells Fargo, which is based in San Francisco, prides itself on its plain-vanilla lending, relying on its consumer deposits and mortgage business. But the bank, the company's fourth-largest by assets, has also made a handful of acquisitions in the last couple years that cater to big investors.
Wells Fargo will take a minority ownership stake in Rock Creek, while the firm's management team and employees hold a majority stake. Wells Fargo said it may acquire a bigger chunk of the firm, which is based in Washington.