Macquarie to acquire AMP Capital’s global equity, fixed income business

Macquarie to acquire AMP Capital's global equity, fixed income business

Macquarie Group (Macquarie) said Thursday that its asset management arm Macquarie Asset Management (MAM) has agreed to acquire AMP Capital’s global equity and fixed income (GEFI) business, including fixed income, Australian listed equities, listed real estate and listed infrastructure, for $A185 million.

AMP’s GEFI business currently manages approximately $A60 billion in assets under management (AuM) for AMP Australia as well as external institutional, retail, and direct clients. 

Macquarie said, as a result of this transaction, MAM’s pro-forma AuM is approximately $A720 billion.

”The transaction consideration values GEFI at up to $A185 million, comprising a base payment of up to $A110 million in cash and a cash earn-out of up to $A75 million payable after the second anniversary of transaction completion,” said Macquaire in a statement.

”“This transaction represents another opportunity, following our recent acquisition of Waddell & Reed, to add scale and expand our public investment capabilities. It cements Macquarie’s position as the leading investment manager in Australia by AuM, and provides new clients joining us from AMP Capital with access to Macquarie’s diversified investment offerings and global platform. Clients will be at the centre of our considerations as we work closely with AMP on a successful integration,” said Ben Way, Head of Macquarie Asset Management.

The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions.