AMP exits private markets business focusing on banks and wealth management units

The logo of AMP Ltd, Australia’s largest retail wealth manager, adorns its headquarters in central Sydney, Australia May 5, 2017. REUTERS/David Gray

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  • Sells AMP Capital’s international infrastructure investment business
  • AMP Capital valued at AU$2.04 billion
  • Return net proceeds in cash via return of capital, redemptions

April 28 (Reuters) – Australia’s AMP Ltd (AMP.AX) will sell AMP Capital’s international infrastructure equity business for up to A$699 million ($497.83 million) to DigitalBridge, based in the United States, leaving the wealth manager with banking, wealth and financial advice. divisions.

AMP said on Thursday it would receive an upfront cash payment of A$462 million from the sale of the assets, an estimated additional performance fee payment of A$57 million and up to A$180 million under subject to future fundraising.

The sale comes just a day after the beleaguered wealth manager announced the sale of AMP Capital’s real estate and national infrastructure equity business to Dexus (DXS.AX) for up to $550 million. Australians. Read more

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“After the completion of the two sales, AMP Ltd will be a more focused entity, focused on driving our core banking and wealth management businesses in Australia and New Zealand, with the primary objective of accelerating our strategy and increase our competitiveness,” said the CEO of AMP. said Officer Alexis George.

With AMP Capital’s two recent asset disposals announced this week, as well as that of the unit’s infrastructure debt platform in February, AMP has now completely exited its global investment management unit AMP Capital, the valuing at 2.04 billion Australian dollars. Read more

The sale seals AMP’s years-long quest to exit its private markets business and focus on wealth management and banking.

The 172-year-old company expects the two recent disposals to increase its net capital by A$1.1 billion. It intends to return the majority of net proceeds in cash through a combination of return of capital and market share buybacks.

The company has overhauled its strategy since a 2017 royal commission into the financial services sector which, along with a host of controversies over corporate misconduct, led to an exodus of customers.

AMP expects the sale of its international infrastructure investment business to be completed in the final quarter of 2022. Shares in the Sydney-based company rose 1.1%, as of 0030 GMT.

($1 = 1.4043 Australian dollars)

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Reporting by Sameer Manekar in Bengaluru; Editing by Uttaresh.V and Sherry Jacob-Phillips

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