Australian investment group Collimate Capital will be laid off after parent company AMP sold its global infrastructure equity business to US private equity group DigitalBridge for A $ 699 million (US $ 497 million).
Collimate Capital was before AMP Capital and was once one of the largest infrastructure managers in the world.
The announced sale, which is subject to regulatory approval, comes a day after AMP announced it would sell Collimate’s domestic infrastructure and property investment business to Australian real estate investor Dexus for A $ 462 million. AMP Capital’s infrastructure debt business was sold to Ares Management in December for A $ 578 million.
AMP said that the business, which changed its name to Collimate Capital earlier this year to prepare the company to be liquidated, will now be liquidated.
The deal completes a number of sales that have turned AMP from an Australian financial services giant with a life insurance and investment management business into a mid-cap wealth manager specializing in financial advice, pensions and boutique banking.
AMP has been the subject of several scandals in recent years, starting with a royal commission into the financial services sector in 2018 that said it had systematically charged customers for financial advice without providing those services.
Two years later, AMP Capital chief executive Boe Pahari has been appointed despite sexual harassment complaints against him.
During those four years, AMP’s stock price has lost about 80 percent of its value.
Collimate’s international equity business has A $ 9bn managed assets, while the domestic property and infrastructure business has A $ 27bn managed.
AMP chief executive Alexis George said: “After completing these two sales, AMP Limited will be a more focused entity, focused on driving its core banking business and retail wealth in Australia and New Zealand, with the core goal of accelerating our strategy and improving our competitiveness. . ”
