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$16.54 as of 2301 GMT.
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.
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.
($1 = 1.4306 Australian dollars)
(Reporting by Roshan Thomas in Bengaluru; Editing by Diane Craft and Edmund Klamann)
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