By Roshan Thomas
March 16 (Reuters) – Australia’s Perpetual Limited said on Monday it agreed to sell its wealth management business to private equity firm Bain Capital for an upfront cash payment of A$500 million ($350 million).
The deal also includes a potential additional upfront payment tied to the advice business’ performance before completion, as well as an earn-out of up to A$50 million linked to the performance of its accounting and wealth operations after completion.
Shares of Perpetual were up 1.9% at A$16.55 as of 2301 GMT, on track for their best session since February 26 if the trend holds.
Founded in 1886, Perpetual has been the target of several takeover approaches in recent years.
In 2022, it rejected a A$1.7 billion takeover bid from a consortium including portfolio manager Regal Partners, and the following year it turned down a A$3.1 billion offer from its largest shareholder, Washington H Soul Pattinson.
Perpetual Limited also unveiled a A$2.18 billion deal with KKR in 2024 to sell its wealth management and corporate trust businesses but later terminated talks with the buyout firm, saying it would instead pursue a separate sale of its wealth management business.
Foreign firms have been vying for a foothold in Australia’s wealth management and retirement savings sector. Superannuation and wealth manager Insignia Financial was at the centre of a A$3.3 billion takeover tussle last year, with several bidders, including Bain Capital, expressing interest in the firm. The company eventually agreed to a takeover offer by CC Capital Partners.
“Listed financial institutions appear to be stepping away from wealth management just as private equity is leaning in,” said Marc Jocum, senior product and investment strategist at Global X ETFs.
“Public markets seem to be exiting the stage just as private capital is buying a front-row seat.”
Perpetual Chief Executive Bernard Reilly said on Monday that the transaction marked a pivotal step in the company’s plan to streamline its structure and focus on its two core businesses.
The unit generated A$235.6 million in revenue in 2025, up from A$226.8 million a year earlier, while underlying profit before tax was A$51.5 million, down 5% from the previous year.
Perpetual added that it expects to complete the transaction toward the end of the 2026 calendar year.
“For a company founded in 1886, this still feels like a historic unwinding, and the market will now be watching closely whether the leaner Perpetual that emerges can rebuild investor confidence after years of strategic drift,” Jocum added.
($1 = 1.4306 Australian dollars)
(Reporting by Roshan Thomas in Bengaluru; Editing by Diane Craft, Edmund Klamann and Lincoln Feast.)
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