AMP announced this week the completion of the sale of its global equities and fixed income (GEFI) business to Macquarie Asset Management (MAM).
As part of the sale, assets under management of approximately A$47 billion will transfer from AMP Capital to MAM.
On completion, AMP will receive a net completion amount of approximately A$63 million cash from MAM reflecting the post-completion adjustments.
AMP can earn a further cash earn-out of up to A$75 million payable after the second anniversary of completion subject to certain conditions including revenue targets.
AMP Capital chief executive Shawn Johnson said, “The completion of the GEFI transaction is a key milestone in Collimate Capital’s separation from AMP and preparation for demerger.
“Our teams have been actively working to ensure a smooth transition of funds and clients and we’re confident that MAM, and our talented teams who are transferring, will deliver great outcomes for them.
“We would like to thank the Macquarie team for the partnership through the transaction and wish our people joining their team every success.”
The deal was first announced in July last year, which was expected to be worth up to A$185 million.
Acting Chief Executive Officer of AMP James Georgeson said at the time the deal brought together two well-known Australian investment businesses with strong track records.
“Our review of the GEFI business last year  showed it had strong capabilities and performance but needed greater scale to compete effectively,” Mr Georgeson said.