Money and other assets are the bedrock of the OpM wealth management business, and the company is expanding its offerings as more assets enter the mix.
The company said Tuesday it has signed deals to acquire a majority stake in Wachovia and other companies in an effort to improve its diversification efforts.
The transaction, which will add to the $7 billion in cash the company has already amassed through deals with investors, is expected to close this year.
The new deal with Wacho will bring the company’s total assets to $3.3 billion.
The cash-cow combination with the banks and other asset managers, which the company announced Tuesday, is also expected to bring the combined company to $4.3 to $5 billion in assets.
OpM will still own the majority of the businesses in Wichos assets, but will instead become the holding company.
The banks and investment banks that will manage the businesses are now OpM’s “direct shareholders,” and OpM is the only bank involved in the deal.
The remaining assets will be managed by the other two banks, according to a company news release.
Wachovian and other Wall Street banks and credit unions have invested in the OpMs business, which includes the assets of banks such as Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., and Bank of New York Mellon Corp., among others.
Wichos holdings include investments in the investment bank BlackRock Inc., the insurance giant UnitedHealth Group Inc., U.S. energy company Chevron Corp., and private equity firm Blackstone Group LP.
Wicho is also involved in other investments, including the energy investment arm of Citi, according the news release from the company.
OpM also owns a minority stake in the mortgage finance company Fannie Mae Holdings Inc., which manages the mortgage market.
The deal with the Fannie group is expected “to allow OpM to further diversify its business by combining the businesses of two leading banks, the FHFA and Fannie, in an orderly and controlled manner,” the company said.
OpMo said it is looking for additional banks to join its investment group, and that it expects the deal to close in the first half of 2019.