AMP sells infrastructure debt arm to Ares Management

AMP has offloaded the infrastructure debt arm of its wealth management business to US-based Ares Management as the troubled financial services company takes another step towards simplifying its structure ahead of a planned spin-off.

The $428 million deal will see AMP Capital (now known as PrivateMarketsCo) hand over its $7 billion infrastructure arm to Ares, which walked away from nabbing the entire AMP business in April.

AMP, under the auspices of recently installed CEO Alexis George, is planning to spin off the AMP Capital (PrivateMarketsCo) business in the new year. The latest deal follows AMP Capital (PrivateMarkets Co) selling its global equities and fixed income business to Macquarie Asset Management in a deal worth $185 million in July.

Ms George, who took the reins in April, has flagged further investment in the banking arm, “transforming” financial advice and building new retirement products as her core priorities.

The 172- year old company is on a mission to rehabilitate its brand after being buffeted by a string of scandals, including systemic misconduct charges following the banking royal commission and a sexual harassment scandal last year.

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In November, AMP announced it expects $325 million of impairment charges from its devalued brand name, reduced rental space and review of financial advice services.

The company forecast post-tax impairment charges include $100 million for deferred tax assets, $95 million for intangibles including the devalued brand name and $75 million for the changes to the group’s office space.

AMP’s PrivateMarketsCo chief executive Shawn Johnson said the divestment will deliver a considerable return to shareholders and good value for clients.