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 \u201ccrown jewel\u201d.<\/p>\n
The international infrastructure equity component of AMP\u2019s 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.<\/p>\n
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AMP has finalised the sale of its so-called crown jewel. <\/span>Credit:<\/span>Will Willitts<\/cite><\/p>\n AMP Capital was long referred to as the group\u2019s \u201ccrown jewel\u201d 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n As part of the latest deal, DigitalBridge has bought $9 billion in assets under management, the related management platform and a \u201csubstantial portion\u201d of the teams located across the UK and Europe, North America and Asia.<\/p>\n 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.<\/p>\n AMP chair Debra Hazelton said the transactions represent a \u201cstrong outcome for AMP shareholders and Collimate Capital stakeholders\u201d.<\/p>\n \u201c 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.<\/p>\n \u201cAMP 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\u2019 clients and the talented teams transferring with them will benefit.\u201d<\/p>\n AMP chief executive Alexis George said it was an \u201cimportant moment\u201d for AMP shareholders, clients and staff. \u201cIn DigitalBridge and Dexus we are confident we have found the right owners for both businesses,\u201d she said.<\/p>\n \u201cThey are focused on delivering strong returns for Collimate Capital\u2019s 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.\u201d<\/p>\n The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. <\/i><\/b>Sign up to get it every weekday morning<\/i><\/b>.<\/i><\/b><\/p>\nMost Viewed in Business<\/h2>\n
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