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Genworth Financial Plans Business Disposals, Including Wealth Management - Report
Genworth Financial intends to sell two of its businesses, including its wealth management operation, as part of a move to raise capital, Reuters reports, citing unnamed sources.
Genworth Financial intends to sell two of its businesses, including its wealth management operation, as part of a move to raise capital, Reuters reports, citing unnamed sources.
The company, based in Richmond, VA, plans to sell its Pleasant Hill, CA-based wealth and asset management business, which has over $20 billion in assets under management and sells its portfolios through about 6,000 third-party advisors around the country, the news service said.
Genworth is looking for a buyer for Altegris, its San Francisco-based alternative investments provider with $3.36 billion in client assets, the report continued. Genworth bought Altegris in 2010 for $35 million, plus additional performance-based payments.
The firm is working with Goldman Sachs on the deal.
One source is quoted saying that if the two firms are sold they could be valued at around $400 million.
Genworth could not be reached for comment by this publication at the time of going to press. Reuters said that a Genworth spokesperson declined to comment. A Goldman spokesperson also declined to comment.
In May, Genworth Financial appointed Martin Klein as chief executive on an interim basis, with James Riepe acting as non-executive chairman of the board, following the resignation of former CEO and chairman Michael Frazier. No specific reasons for Frazier's departure were given in the firm's statement. At the time, the firm said it was reviewing its business portfolio.
Genworth has been part of General Electric; the firm now faces intensifying scrutiny by rating agencies. Last week, Standard & Poor’s cut its credit rating to BBB- from BBB, just above junk bond status.
In July, this publication reported that Genworth Financial Wealth Management expanded its investment platform for independent financial advisors, adding eight new strategies to address three challenges faced by advisors and their clients.
