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
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
