Australia’s Perpetual has signed an exclusivity deed with Bain Capital Private Equity as discussions regarding the possible sale of its Wealth Management arm move forward.
The company stated in an announcement that there is “no certainty of reaching a binding agreement or that any transaction would proceed”, and assured shareholders they will be kept informed in line with disclosure requirements.
Earlier in 2024, Perpetual revealed it had reached A$2.18bn ($1.42bn) agreement with KKR to sell both its wealth management and corporate trust operations.
However, the company later ended those negotiations and decided to sell only the wealth management segment separately.
For its recent full-year results, Perpetual’s Wealth Management division reported revenue of A$235.6m, up 4% on the previous year, according to Reuters.
Despite the increase in revenue, underlying profit before tax dropped by 5%, which the company attributed to slower growth in non-market-related income and higher costs, the news agency’s report added.
According to its annual report, the division manages A$21.5bn in funds under advice.
In recent years, Perpetual is said to have attracted takeover interest multiple times. The firm rejected A$1.7bn offer from a consortium that comprised Regal Partners, in 2022.
The following year, the group turned down A$3.1bn bid from its largest shareholder, Washington H Soul Pattinson.
Perpetual operates globally across asset management, wealth management, and trustee services under various brands including Perpetual, Barrow Hanley, Pendal, J O Hambro, Regnan, TSW and Trillium.
Its wealth management services are delivered through Perpetual Private, Fordham and Jacaranda Financial Planning, while its corporate trust division serves managed funds and the debt market both locally and internationally.
Apart from its homeland, Perpetual operates offices globally in Asia, Europe, the US and the UK.
