Australia’s Perpetual Exits Wealth in $350 Million Bain Sale

Article content(Bloomberg) — Australian fund manager Perpetual Ltd. agreed to sell its wealth management unit to buyout firm Bain Capital for A$500 million ($350 million) as the nation’s wealth sector continues to draw global investors keen on grabbing a slice of the A$4.5 trillion pension pool. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentAustralia’s pool of retirement savings — currently the world’s fourth-largest and the fastest growing among developed nations — is forecast to top the UK and Canada by the early 2030s to become the second-largest globally. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“The Australian wealth sector is growing strongly, underpinned by macro trends including an aging population, wage growth and the need to manage intergenerational transfers of A$5 trillion-plus over coming decades,” Bain’s Charles Lawson, who co-led the investment in Perpetual, said in a statement Monday. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“Against this backdrop, financial advice in Australia remains highly fragmented and we believe there will be opportunities to help drive consolidation through the Perpetual Wealth Management business,” he said. Article contentPerpetual’s wealth unit had A$21.9 billion of funds under advice as of Dec. 31. It services high-net worth clients, not-for-profit organizations and private businesses. Article contentThe sale is another foray by an international firm tapping Australia’s booming pensions and wealth market. Last year, CC Capital Partners agreed to buy Insignia Financial Ltd., another major player in the sector, in a deal worth around A$3.3 billion. Article contentPerpetual has been trying to sell its wealth management business for around two years as part of a restructuring plan. An earlier attempt to offload the unit to KKR & Co. fell apart due to an unexpected tax bill. Article contentOn top of the sale price, there is an potential additional upfront cash payment based on the business’s performance before completion of the deal, Perpetual said in a statement. There is also an earnout payment of up to A$50 million based on the unit’s performance in the two years after the sale. Article contentAs part of the sale, Perpetual will license the ‘Perpetual Wealth’ and ‘Perpetual Private’ brands to Bain for 15 years. Article contentBarrenjoey Capital Partners is advising Perpetual on the deal. Article content(Adds comment from Bain in third paragraph.)Article contentTrending This TSX stock has 30% upside on the company's $11 billion project backlog, analyst says Investor Bank of Canada more likely to cut than hike after 'brutal' jobs report, say economists Economy Garry Marr: The pros and cons of doling out inheritance with a warm hand Family Finance Canadians’ average wealth hit $1.07 million, but what’s driving net worth depends on your age, province and bracket Wealth Posthaste: Oil supply shock could force the Bank of Canada's hand yet News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. This TSX stock has 30% upside on the company's $11 billion project backlog, analyst says Investor Bank of Canada more likely to cut than hike after 'brutal' jobs report, say economists Economy Garry Marr: The pros and cons of doling out inheritance with a warm hand Family Finance Canadians’ average wealth hit $1.07 million, but what’s driving net worth depends on your age, province and bracket Wealth Posthaste: Oil supply shock could force the Bank of Canada's hand yet News