Financial services firm Perpetual Group has signed a scheme implementation deed (SID) to divest its wealth management and corporate trust businesses to an affiliate of Kohlberg Kravis Roberts & Co (KKR) in a deal worth A$2.2bn ($1.43bn).
According to the board of Perpetual Group, the sale of its corporate trust and wealth management units will offer a compelling value for shareholders. It is also said to bring robust outcome for employees, clients, and other stakeholders of the Australian firm.
Post transaction, Perpetual Group will become an independent, global multi-boutique asset management business with scale, diversified investment strategies. It will be supported by a leaner and more streamlined structure with a strong balance sheet.
The firm will manage A$227bn ($149bn) in assets under management.
Perpetual Group CEO and managing director Rob Adams said: “This is a positive outcome for our shareholders, our clients and our people. Each business will now have the focus and capital required to continue to grow in their respective markets ensuring our clients continue to receive world-class advice and services.
“In the remaining Asset Management business, our shareholders will own a simpler, more streamlined, pure-play and independent global multiboutique investment management business, with organic growth potential.”
Perpetual Group is expected to offer transitional services to KKR for an 18-month period after the closing of the deal, with options to extend for an additional 12 months.
Upon the completion of the transaction, the wealth management and corporate trust businesses will continue to have the same management and will function as standalone independent businesses.
KKR Australia partner and co-head David Lang said: “We have developed important relationships with the Wealth Management and the Corporate Trust management teams and will invest behind their strategic ambitions of being two independent standalone businesses.”
Headquartered in Sydney, Perpetual Group operates a multiboutique asset management business. It owns asset management brands including Perpetual, Pendal, Regnan, Trillium, Barrow Hanley, J O Hambro, and TSW.
Subject to the satisfaction of customary conditions, the transaction is expected to be completed in February 2025.
