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KKR → Perpetual's Wealth Management and Corporate Trust businesses

withdrawn
Deal announced2024-05-08
BuyerKKR
SellerPerpetual's Wealth Management and Corporate Trust businesses
SectorFinancial Services
ValueA$2.2B
Deal typePE

KKR agreed to acquire Perpetual's Wealth Management and Corporate Trust businesses for A$2.175 billion, following a strategic review that concluded a sale of these units would deliver more value than retaining them within a diversified group, leaving a leaner, pure-play global asset manager.

Why the buyer wanted it

KKR sought to acquire scaled, cash-generative Australian wealth management and corporate trust platforms, valued at a reported 13.7x LTM EBITDA.

Why the seller agreed

Perpetual's board pursued the sale after a six-month strategic review found that separating the two divisions and returning to a pure-play asset management focus would create superior shareholder value versus a full demerger.

Stock reaction

Perpetual shares fell around 7% following the announcement, reflecting investor skepticism about the deal terms and structure.

Analyst / market commentary

An adverse tax ruling later reduced the effective value of the deal, and the transaction faced renegotiation through 2024 before a revised structure was agreed.

Deal mechanics

Seller's advisors

Gilbert + Tobin

Deal structure

Scheme of arrangement sale of two business units

Valuation multiple

13.7x LTM EBITDA / 16.3x LTM EBIT

Regulatory approval

Subject to Perpetual shareholder vote and customary conditions

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