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- AMP’s PrivateMarketsCo has sold its Infrastructure Debt platform to Ares Holdings, a subsidiary of Ares Management, for a total cash consideration of $428 million
- The agreement follows PrivateMarketsCo’s decision to focus on its key strength of managing equity investments in real estate and infrastructure
- This deal values Infrastructure Debt at a total of approximately $578 million, which includes $150 million of sponsor investments and rights to the carried interest in closed infrastructure debt funds
- CEO of PrivateMarketsCo, Shawn Johnson, says the transaction provides strong outcomes for both the Infrastructure Debt clients and AMP’s shareholders
- AMP is up 5.85 per cent to 99.5 cents at 10:30 am AEDT
AMP‘s PrivateMarketsCo has sold its Infrastructure Debt platform to Ares Holdings, a subsidiary of Ares Management, for a total cash consideration of $428 million.
This follows PrivateMarketsCo’s decision to focus on equity investments in real estate and infrastructure while simplifying its structure.
This transaction comes after the announcement to operationally separate from AMP in November 2021. The demerger should be complete in the first half of 2022.
This transaction values Infrastructure Debt at a total of approximately $578 million.
This includes $428 million in cash, $38 million for rights to the carried interest for open infrastructure debt funds, and $15 million for the purchase of PrivateMarketsCo’s funded sponsor investment in open infrastructure debt funds.
It also includes $150 million of sponsor investments and rights to the carried interest in closed infrastructure debt funds.
The cash proceeds will strengthen the capital of AMP.
CEO of PrivateMarketsCo, Shawn Johnson, says the transaction provides strong outcomes for both the Infrastructure Debt clients and AMP’s shareholders
“Infrastructure Debt will further accelerate its growth as part of Ares’ global alternative investment platform, benefitting the clients who have supported it through its early stages under our ownership,” he said.
“Infrastructure Debt will further accelerate its growth as part of Ares’ global alternative investment platform, benefitting the clients who have supported it through its early stages under our ownership.
“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.”
The transaction is expected to be completed in the first quarter of 2022.
On completion, the entire Infrastructure Debt investment strategy, including $7 billion in invested assets under management on behalf of clients globally, and its investment team will transfer to Ares.
AMP is up 5.85 per cent to 99.5 cents at 10:30 am AEDT.
