AMP Limited has agreed to sell the global equity and fixed income (GEFI) business of its financial management arm to Macquarie Asset Management for up to A $ 185 million ($ 140 million), announced Thursday the two companies.

The sale of AMP Capital’s approximately A $ 60 billion GEFI business, expected to be finalized in the first quarter of 2022, is the first step in a planned restructuring of the fund manager’s broader business.

These plans call for the transfer of the business of the multi-asset group of over A $ 60 billion from AMP Capital to its retail business AMP Australia, followed by a spin-off and listing of the private markets business of AMP Capital. ‘around A $ 60 billion.

“The sale implements AMP Capital’s strategy of focusing on high growth opportunities in private markets across real estate, infrastructure and associated adjacencies, and is an important step in preparing for the company for its planned spin-off of AMP Limited ”in the first half of 2022, according to a press release from AMP.

The A $ 60 billion GEFI business will bring Macquarie Asset Management’s assets under management to approximately A $ 720 billion, solidifying the company’s position as Australia’s top investment manager by AUM, Ben Way, director of Macquarie Asset Management, noted in a separate press release.

The agreement provides for a base payment of up to A $ 110 million upon closing, with a cash earn-out of up to A $ 75 million to be paid on the second anniversary of the transaction, the amount to be determined by conditions such as income targets.

In March, Fiera Capital agreed to acquire the $ 500 million global business unit from AMP Capital, including a UCITS platform and the AMP Capital Global Companies fund in Australia and New Zealand.


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