AMP Limited has sold the remaining part of its asset management business to a New York investment firm in a deal worth at least $462 million, marking the end to long-running negotiations to sell its so-called “crown jewel”.
The international infrastructure equity component of AMP’s asset management business, formerly known as AMP Capital but rebranded to Collimate Capital this year, has been sold to a subsidiary of DigitalBridge Group, a NYSE-listed infrastructure investment firm.
AMP has finalised the sale of its so-called crown jewel. Credit:Will Willitts
AMP Capital was long referred to as the group’s “crown jewel” until the division was hit with a sexual harassment scandal in 2020 that triggered an investor revolt and led to significant outflows from the funds.
Since then the main leadership group has been overhauled and has a new chief executive and chair. It sought to splinter and sell off AMP Capital to focus on domestic wealth management, financial advice and banking.
In a statement to the ASX on Thursday, AMP said the deal with the US investor included an upfront consideration of $462 million and total value of up to $699 million.
AMP said Collimate was valued between $2 billion-$2.5 billion after the sale of its domestic infrastructure equity business to Dexus announced yesterday combined with the February sale of its infrastructure debt platform.
As part of the latest deal, DigitalBridge has bought $9 billion in assets under management, the related management platform and a “substantial portion” of the teams located across the UK and Europe, North America and Asia.
AMP said it intends to return a significant portion of the proceeds from the recent sales to shareholders through capital return and on-market share buybacks.
AMP chair Debra Hazelton said the transactions represent a “strong outcome for AMP shareholders and Collimate Capital stakeholders”.
“ It was clear in our 2021 portfolio review that we had two businesses that would be better separated and simplified and in doing so realise greater value and that is what we have achieved.
“AMP and Collimate Capital have built outstanding private markets businesses in infrastructure and real estate over many years. In selling these businesses to such respected specialists in DigitalBridge and Dexus, we are confident that the businesses’ clients and the talented teams transferring with them will benefit.”
AMP chief executive Alexis George said it was an “important moment” for AMP shareholders, clients and staff. “In DigitalBridge and Dexus we are confident we have found the right owners for both businesses,” she said.
“They are focused on delivering strong returns for Collimate Capital’s clients and opportunities for our people. We expect both will add significant value through their scale, capability and depth of talent, which our teams will complement.”
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