Mon, Apr 19, 2021
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

AMP, Ares plan $1.8bn private markets partnership

Friday, February 26, 2021

Laxman Pai, Opalesque Asia:

Los Angeles-based Ares Management Corp. and Australia's AMP Ltd. have agreed to pursue a A$2.25 billion (US$1.8 billion) joint venture for AMP's private markets business.

The Australian wealth manager will retain 40 percent of AMP Capital's private markets business, worth A$900 million, which deals in infrastructure equity and debt, real estate, and other minority assets. Ares would take a 60 percent stake of the new business for $1.35 billion.

Ares would take management control and a new 10-seat board would be set up, Ares having six seats and AMP with four, said a press release from the global alternative investment manager.

The joint venture is expected to raise A$0.5 billion of debt to maximize capital efficiency which would reduce the pro-rata equity contributions for each party in the joint venture. Therefore, under this assumption, Ares would fund A$1.05 billion in equity to the joint venture and AMP would receive expected gross cash proceeds of up to A$1.55 billion (before separation costs and capital release).

"The joint venture would enable the Private Markets business to benefit from Ares' brand and global strengths in investment and distribution as well as already strong infrastructure and real estate capabilities, and continue to build upon AMP Capital's well-established processes and investment capabilities, improving its scale and potential growth trajectory," said the release.

On 31 December 2020, Ares had US$1......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. New Launches: Atlas Holdings closes fourth PE fund at $3.1bn, Zigg Capital nabs $225m to invest in proptech startups, Canvas Ventures raises $350m to help bring intentionality back to early-stage investing, BlackRock and Fidelity launch first green bond ETFs[more]

    Atlas Holdings closes fourth PE fund at $3.1bn From PE Insights: Atlas Holdings has held the first and final close of its fourth private equity investment fund, Atlas Capital Resources IV LP (ACR IV) at its hard cap of $3.1 billion. The latest fundraising, which began in Novembe

  2. SPACs: UK stock market to lure SPACs with rules overhaul, Nuvation Bio flounders after EcoR1 SPAC merger, Singapore Exchange may launch regulatory framework for SPACs by mid-2021, SPAC listings slow to a crawl with bankers buried in paperwork[more]

    UK stock market to lure SPACs with rules overhaul From Yahoo Finance: Britain's financial watchdog has fired the starting gun on plans to overhaul stock market rules in a bid to lure more SPACs to the London market. The Financial Conduct Authority (FCA) on Wednesday said it woul

  3. New Launches: Amundi launches Just Transition for Climate fund, Index Ventures launches $200m seed fund, China's Hosen Capital hits $800m hard cap for third US dollar fundraise, Shackleton launches fifth venture secondaries fund[more]

    Amundi launches Just Transition for Climate fund From Bloomberg: Amundi has launched a European fixed income fund that will support energy transition. The Just Transition for Climate fund is managed by Alban de Fa?, head of fixed income ESG investing, and Dany da Fonseca, credit portfo

  4. SPACs: Investors see $90bn SPAC craze fizzling in the next year, US regulator turns spotlight on rosy SPAC projections, SPACs drive March M&A record, but other infotech players are still buying, Blank-check ETFs keep coming even as SPAC fever cools down[more]

    Investors see $90bn SPAC craze fizzling in the next year From PE News: Investors overseeing almost $13tn in assets say the frenzy around Spac listings will slow over the coming 12 months, predicting a spate of high profile failures will suppress appetite for so-called blank-cheque comp

  5. PE/VC: 'Frustrated' limited partners are questioning PE-sponsored SPACs, European venture reaches all-time high in the first quarter of 2021[more]

    'Frustrated' limited partners are questioning PE-sponsored SPACs From Institutional Investor: It's hard to imagine that private equity firms would have stayed out of the booming business of special-purpose acquisition companies. But private-equity-sponsored SPACs could lead to conflicts