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AMP inks deal to sell debt platform to Ares

By Reporter
2 minute read

AMP’s Private Markets business, PrivateMarketsCo, has entered into a binding agreement to sell its Infrastructure Debt platform to Ares Holdings LP, a subsidiary of Ares Management Corporation for a total cash consideration of $428 million.

In a statement on Friday, AMP confirmed the demerger of its PrivateMarketsCo, noting it follows the unit’s strategic decision to focus on its key strength of managing equity investments in real estate and infrastructure.

The cash proceeds from the sale are expected to strengthen the capital position of the AMP Group.

“PrivateMarketsCo and AMP will realise significant value from the divestment, as well as retaining our valuable sponsor investments and carried interest in the closed Infrastructure Debt funds. This will provide a strong revenue stream in coming years as we demerge PrivateMarketsCo and accelerate the momentum in our business,” said Shawn Johnson, PrivateMarketsCo chief executive.

“PrivateMarketsCo’s go-forward business will be focused on our key strength in managing equity investments in real estate and infrastructure with A$44 billion in AUM, and a pipeline for developing new products that meet the needs of our clients.”

AMP confirmed that the separation of the balance sheet and allocations of surplus capital between AMP Limited and PrivateMarketsCo is continuing as part of the demerger preparations, with a further update to be provided closer to the date of the demerger.

The transaction is expected to complete in Q1 2022 and is subject to the transfer of key employees, applicable client and fund financier consents, no material adverse effect occurring and other customary conditions precedent.