Private equity firms GTCR and Reverence Capital are reportedly preparing to sell Allspring Global Investments, the asset management business they acquired from Wells Fargo in 2021. The potential transaction could value Allspring at approximately $4 billion, according to sources familiar with the matter.

Allspring, which was spun off from Wells Fargo following the bank’s divestiture of Franklin Templeton in 2020, remains partly owned by its employees, who hold about 20% of the company’s shares. Discussions regarding the sale are said to be in early stages, with no final decisions made at this time.

This potential sale comes amid an accelerated wave of consolidation in the asset management industry. Deal activity reached a record high in 2023, with global asset management transactions totaling $53.8 billion as of late August, data from Dealogic shows.

The sector has seen significant deals in recent months. Notably, UK-based Schroders agreed to a £9.9 billion takeover by US asset manager Nuveen, while Victory Capital, based in Texas, announced a $7 billion purchase of First Eagle. Victory Capital’s acquisition followed its unsuccessful attempt to acquire Janus Henderson earlier this year. That deal was ultimately won by Trian Fund Management, led by Nelson Peltz, alongside investors including venture firm General Catalyst, who made an $8 billion all-cash offer.

GTCR has declined to comment on the reported sale, while Reverence Capital and Allspring did not respond to requests for statements. If completed, the transaction would add to the ongoing reshaping of the asset management landscape driven by private equity involvement and strategic industry realignments.