AMP to demerge its private markets business
AMP Limited has announced its intention to pursue a demerger of its AMP Capital private markets investment management business.
The company has announced to the Australian Securities Exchange (ASX) that the demerger decision follows an end to talks with Ares Management Corporation regarding acquisition of the business.
It said the demerger would create two more focussed businesses, better equipped to pursue and allocate capital to distinct growth opportunities.
The result will be AMP Limited and a Private Markets business with AMP keeping a 20% stake in the private markets business.
Under the new structure AMP will become a retail-focused wealth management, investment and banking group while retaining its 20% stake in the private markets business.
At the same time it will continue pursuing sale or partnership opportunities with respect to the AMP Capital Global and Fixed Income business with the AMP Capital Multi-Asset Group transferring to AMP Capital.
The Private Markets business will focus on the remainder entailing infrastructure, infrastructure debt and real estate.
The change will see the exit of Boe Pahari.
AMP said it would start the demerger process immediately establishing operational independence and new branding.
Recommended for you
Bennelong Funds Management has signed a memorandum of understanding with US private credit manager Monroe Capital to distribute its products in Australia.
Global equity manager Talaria Capital has appointed a Sydney-based sales director as it grows its distribution presence across Australia.
Global private markets firm Partners Group has launched an evergreen fund to provide Australian advisers with access to its cross-sector royalties strategy.
Franklin Templeton has reduced fees for two of its Brandywine fixed income funds and enacted a name change for its Global Income Optimiser fund.
