Bank to retain Eastdil’s public market investment banking and capital
markets business to form a new Real Estate, Gaming, Lodging and Leisure
industry coverage group
NEW YORK–(BUSINESS WIRE)–Wells Fargo & Company (NYSE: WFC) today announced the sale of Eastdil
Secured (Eastdil), its private real estate investment banking division.
This follows Eastdil’s management-led recapitalization, in partnership
with Guggenheim Investments, on behalf of certain institutional clients,
and Temasek, a global investment company headquartered in Singapore.
Subsequent to the sale, Wells Fargo will retain the public market real
estate investment bankers of Eastdil, who will form the Real Estate,
Gaming, Lodging, and Leisure (REGAL) industry coverage group within
Corporate & Investment Banking (CIB). Additionally, Wells Fargo will
retain a minority ownership interest in Eastdil.
“This newly dedicated Real Estate, Gaming, Lodging, and Leisure
investment banking coverage group will leverage partnerships across the
bank, with a deep pool of talent and expertise, to serve clients in
these key industries and their complex financial needs,” said Rob Engel,
co-head of Wells Fargo Corporate & Investment Banking.
The REGAL team will provide a full suite of investment banking and
capital markets capabilities including mergers and acquisition advisory
solutions, as well as debt and equity origination and structuring. The
group will also continue its long-standing partnership with Wells
Fargo’s Commercial Real Estate (CRE) group, the top commercial real
estate lender in the country with a commercial real estate portfolio
totaling approximately $143.5 billion.
The CRE group delivers a comprehensive platform of banking, financing
and servicing solutions for commercial real estate companies inclusive
of: balance sheet lending; CMBS origination, distribution and loan
servicing; agency financing for multifamily assets; financing for real
estate investment trusts (REITS); and debt and equity capital for the
affordable housing industry.
“The breadth and depth of Wells Fargo’s Commercial Real Estate platform
is unmatched in the industry, and our CRE team looks forward to
partnering closely with the new REGAL investment banking coverage group
to continue delivering a comprehensive and seamless suite of financing
solutions and advice to commercial real estate clients,” said Mark
Myers, head of Wells Fargo Commercial Real Estate.
Pending regulatory approvals, the transaction is expected to close in
the fourth quarter of 2019. Terms of the transaction have not been
disclosed. Wells Fargo Securities served as the financial advisor to
Wells Fargo with Sullivan & Cromwell LLP serving as legal counsel.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Wells Fargo’s
vision is to satisfy our customers’ financial needs and help them
succeed financially. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, investment and mortgage products and
services, as well as consumer and commercial finance, through 7,800
locations, more than 13,000 ATMs, the internet (wellsfargo.com) and
mobile banking, and has offices in 37 countries and territories to
support customers who conduct business in the global economy. With
approximately 259,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was ranked No. 26
on Fortune’s 2018 rankings of America’s largest corporations. News,
insights and perspectives from Wells Fargo are also available at Wells
Cautionary Statement about Forward-Looking Statements
This News Release may include forward-looking statements about our
future financial performance and business. Because forward-looking
statements are based on our current expectations and assumptions
regarding the future, they are subject to inherent risks and
uncertainties. Do not unduly rely on forward-looking statements as
actual results could differ materially from expectations.
Forward-looking statements speak only as of the date made, and we do not
undertake to update them to reflect changes or events that occur after
that date. For information about factors that could cause actual results
to differ materially from our expectations, refer to our reports filed
with the Securities and Exchange Commission, including the
“Forward-Looking Statements” discussion in Wells Fargo’s most recent
Quarterly Report on Form 10-Q as well as to Wells Fargo’s other reports
filed with the Securities and Exchange Commission, including the
discussion under “Risk Factors” in our Annual Report on Form 10-K for
the year ended December 31, 2018, available on its website at www.sec.gov.
Jessica R. Ong, 1-212-214-8242
John Campbell, 1-415-396-0523