Perpetual enters exclusive talks with Bain Capital over wealth unit divestment

Core Viewpoint - Australia's Perpetual is in exclusive discussions with Bain Capital Private Equity regarding the potential sale of its Wealth Management arm, although there is no guarantee of a binding agreement or transaction proceeding [1]. Group 1: Sale Discussions - Perpetual has signed an exclusivity deed with Bain Capital as it moves forward with discussions about selling its Wealth Management division [1]. - Earlier in 2024, Perpetual had a A$2.18 billion ($1.42 billion) agreement with KKR to sell both its wealth management and corporate trust operations, but later decided to sell only the wealth management segment separately [2]. - The company has previously attracted takeover interest, rejecting a A$1.7 billion offer from a consortium including Regal Partners in 2022 and a A$3.1 billion bid from its largest shareholder, Washington H Soul Pattinson, in 2023 [3][4]. Group 2: Financial Performance - For the recent full-year results, Perpetual's Wealth Management division reported revenue of A$235.6 million, reflecting a 4% increase from the previous year [2]. - Despite the revenue increase, underlying profit before tax decreased by 5%, attributed to slower growth in non-market-related income and higher costs [3]. - The Wealth Management division manages A$21.5 billion in funds under advice [3]. Group 3: Operational Overview - Perpetual operates globally across asset management, wealth management, and trustee services under various brands, including Perpetual, Barrow Hanley, Pendal, J O Hambro, Regnan, TSW, and Trillium [4]. - Wealth management services are provided through Perpetual Private, Fordham, and Jacaranda Financial Planning, while the corporate trust division serves managed funds and the debt market both locally and internationally [5]. - Perpetual has a global presence with offices in Asia, Europe, the US, and the UK [5].