KKR to buy Perpetual wealth, corporate units

The buyout leaves Perpetual as a standalone asset management business that will manage around A$227bil in assets. — Reuters

SYDNEY: Perpetual says that buyout giant KKR & Co would acquire its wealth management and corporate trust businesses for A$2.18bil (US$1.43bil), sending the Australian financial services firm’s shares to a five-month low.

Perpetual also announced the retirement of its chief executive officer and managing director, Rob Adams, bringing an end to a months-long strategic review of the company.

The deal comes 16 months after Perpetual acquired smaller fund manager Pendal in a deal worth US$1.6bil and is now being demerged with KKR buying the corporate and wealth management units.

“The strategic review was extremely thorough and considered a number of options, involving extensive engagement with several high-quality parties and potential bidders,” said chairman Tony D’Aloisio.

The buyout leaves Perpetual as a standalone asset management business that will manage around A$227bil in assets and will help the global investment firm expand its footprint in Australia.

The company was recently active in the mergers and acquisitions market, with suitors both local and overseas looking to cash in on the fund manager. — Reuters