Wells Fargo Asset Management Makes a Strategic Investment in the Rock Creek Group

  Wells Fargo Asset Management Makes a Strategic Investment in the Rock Creek
  Group

      Firm takes minority ownership stake in alternatives asset manager

Business Wire

CHARLOTTE, N.C. -- December 18, 2012

Wells Fargo Asset Management (WFAM) today announced that it had acquired a
minority ownership stake in privately held The Rock Creek Group (Rock Creek),
a Washington, D.C.-based fund of hedge funds firm with approximately $7
billion in assets under management. The financial terms of the transaction
were not disclosed.

Rock Creek provides commingled and customized multi-manager alternatives and
long-only investment solutions to institutional clients. The firm designs and
implements customized fund of hedge funds and emerging market portfolios
through top-down asset allocation and manager selection, leveraging Rock
Creek’s sophisticated, proprietary analytics platform Rock Creek Solutions.

Rock Creek was established in 2002 by Afsaneh Beschloss, who serves as
President and Chief Executive Officer of the firm. Previously, Beschloss was
the Treasurer and Chief Investment Officer of the World Bank, responsible for
managing $65 billion in assets and a $30 billion funding strategy, as well as
$160 billion in derivatives and structured products. In this position, she was
instrumental in developing the World Bank’s portfolio of alternative
investments and private equity investments.

“We are pleased to be partnering with one of the world’s leading and most
respected diversified financial services firms,” Beschloss said. “We believe
this strategic partnership with Wells Fargo Asset Management will further
enhance our ability to offer industry leading solutions and services to our
clients, while maintaining our corporate culture and institutional investment
process.”

WFAM is making this investment through the Affiliated Managers Division, which
is headed by Tom Hoops and employs a multi-boutique asset management model.
The 50-member Rock Creek team will remain independent with no change in its
structure, investment philosophy or process, team and investment committee
composition, or location; all day-to-day management will reside with the
current Rock Creek team, which will continue to be led by Beschloss.

WFAM will take a minority ownership stake, with the Rock Creek management team
and employees having a majority equity stake in the firm. This partnership
further increases the long-term alignment of interests between Rock Creek and
its clients as it involves a broadening of the equity ownership among Rock
Creek’s team. WFAM may acquire additional ownership interests in Rock Creek
through long-term put and call arrangements in subsequent years, subject to
customary conditions.

Michael Niedermeyer, Chief Executive Officer of Wells Fargo Asset Management,
said, “We are very excited to be partnering with The Rock Creek Group, a
well-respected and growing global investment firm with an outstanding
reputation in the hedge fund industry. Our clients have expressed their desire
for increased alternative investment solutions, and this partnership allows us
to meet those needs. Rock Creek’s expertise across asset classes and in asset
allocation is complemented by their strong portfolio transparency, commitment
to risk management, and enhanced reporting and analytics—capabilities that not
only serve their clients well but also closely align with our philosophy and
culture."

Lazard acted as financial advisor to Rock Creek on the transaction and
Sullivan & Cromwell LLP acted as legal counsel to Rock Creek and K&L Gates LLP
acted as legal counsel to Wells Fargo Asset Management.

About Wells Fargo Asset Management

With more than $450 billion in assets under management as of September 30,
2012, Wells Fargo Asset Management (WFAM) has over 35 autonomous investment
teams with specialized expertise and proven processes; 1,700 dedicated team
members, including more than 500 investment professionals; and a global reach
with offices and clients around the world. Wells Fargo Asset Management
comprises Wells Capital Management, Wells Fargo Funds Management, LLC (advisor
to the Wells Fargo Advantage Funds®), and the Affiliated Managers Division
which includes several other boutique investment managers, including ECM Asset
Management, Ltd., stable-value manager Galliard Capital Management, Inc., and
quantitative manager Golden Capital Management, LLC.

Wells Fargo & Company is a nationwide, diversified, community-based financial
services company with $1.4 trillion in assets. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking, insurance,
investments, mortgage, and consumer and commercial finance through more than
9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and has offices in
more than 35 countries to support the bank’s customers who conduct business in
the global economy. With more than 265,000 team members, Wells Fargo serves
one in three households in the United States. Wells Fargo was ranked No. 26 on
Fortune’s 2012 rankings of America’s largest corporations. Wells Fargo’s
vision is to satisfy all our customers’ financial needs and help them succeed
financially.

About The Rock Creek Group

The Rock Creek Group (Rock Creek) is a leading investment and advisory firm
focused on investing in multi-manager portfolios of alternative investments as
well as in emerging markets. It is one of the largest fund of hedge funds in
the U.S. with 100% institutional assets. Rock Creek’s investors include
premier institutional investors including pension plans, sovereign wealth
funds, endowments, and foundations. It uses a sophisticated
internally-developed Rock Creek Solutions platform to advise clients and to
build portfolios that create long-term value. The Rock Creek Group was founded
by Afsaneh Beschloss who was the Treasurer and Chief Investment Officer of the
World Bank. Rock Creek manages more than $7 billion and approximately three
quarters of assets are in customized portfolios to meet specific client
objectives.

Contact:

Wells Fargo Asset Management
Laura Fay, 617-210-3867
lfay@wellsfargo.com
or
Rock Creek
Stephen Labaton, 646-805-2042
Stephen.Labaton@RLMFinsbury.com
 
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