Perpetual has announced the sale of its wealth management arm to private equity firm Bain Capital for A$500 million (US$350 million).
The companies revealed that they agreed to an upfront cash agreement and a potential additional upfront cash payment completion based on performance and an earn-out of up to $50 million in an ASX release.
As part of the transaction, Perpetual will also license the brands “Perpetual Wealth” and “Perpetual Private” to the Perpetual Wealth Management Group for a period of 15 years, as well as continue to own all rights in the “Perpetual” brand.
The sale transaction will be implemented through the sale of all shares in Perpetual PWM Services as the head company of Perpetual Wealth Management Group, and is on a cash and debt-free basis.
Perpetual CEO and managing director Bernard Reilly said the company believes this is the right outcome for its shareholders.
“Following completion, Perpetual will have a stronger balance sheet and more simplified business, focused on two core businesses, asset management and corporate trustee services, while also enhancing its ability to invest for future growth and deliver improved shareholder returns over the longer term,” he said.
“We believe we have found the right owner for the Wealth Management business to help it continue to grow and deliver high-quality products and services to its clients.
“Today’s announcement also provides clarity and certainty for our teams, who have continued to show an exceptionally high level of professionalism, commitment and focus throughout this process.”
As of 31 December 2025, Perpetual Wealth Management has around $21.9 billion in funds under advice.
Additional transaction and separation costs, not already incurred and expensed as at 31 December 2025 in relation to the transaction, are expected to be approximately $30 million post-tax and expected to be incurred over a period of between 12 and 18 months.
The sale follows a prior agreement to sell the wealth management division to KKR, which fell through in February 2025 for tax reasons.
The deal is expected to be completed by the end of the 2026 calendar year, but is still subject to regulatory approvals and to Perpetual completing the corporate restructure required to separate the business.
Former Perpetual chief executive Geoff Lloyd will return to lead the division as executive chair under Bain’s ownership.
Perpetual will also offer transitional services relating to technology and other operating services, and incidental matters to the Perpetual Wealth Management Group for up to 18 months after the completion of the deal. There will also be an option for the Perpetual Wealth Management Group to extend those services for up to a further six months.
By 12:35 pm AEDT (1:35 am GMT) Perpetual shares (ASX: PPT) were trading 2.3% higher at A$16.61. The company maintains a market capitalisation of $1.87 billion.
