Bain Capital to Pay More Than $349M for Australian Wealth Management Business -- Update

Dow Jones
Mar 16
 

By Stuart Condie

 

SYDNEY--Bain Capital will pay more than US$349 million to acquire an Australian wealth-management business from local investment manager Perpetual.

The Boston-based private-equity provider has long been seeking exposure to Australian wealth management as a play on the country's aging population. It moved for one of Perpetual's local rivals a year ago, but withdrew an offer due to tariff-driven volatility in global debt and equity markets.

Australia-listed Perpetual on Monday said Bain Capital would pay an up-front 500 million Australian dollars, equivalent to US$349.1 million, in cash.

The deal includes a potential additional cash payment based on how the advice business performs prior to completion, which Perpetual expects by the end of 2026.

Bain Capital could also pay an earn out of up to A$50 million after two years, Perpetual added.

"We believe we have found the right owner for the wealth management business to help it continue to grow," Perpetual CEO Bernard Reilly said.

The announcement comes 10 months after Bain Capital withdrew a A$3.4 billion bid for Insignia Financial, one of Perpetual's locally listed rivals, amid the sudden lurches in debt and equity markets caused by the Trump administration's tariff policy.

In June, Mike Murphy, who heads Bain Capital's Australia operations, said the country's aging population made the wealth-management sector particularly attractive.

Perpetual will license its Perpetual Private and Perpetual Wealth brands to Bain Capital for 15 years as part of the deal, which requires approval by Australia's foreign investment regulator.

Bain Capital's Australian investments include the 2020 acquisition of airline Virgin Australia, which it relisted last year. It still owns about 40% of the carrier.

Perpetual plans to pay down debt and focus on organic growth at its remaining asset-management and corporate-trust businesses. It expects to incur about A$30 million in additional post-tax costs to separate the wealth-management unit and complete the transaction.

 

Write to Stuart Condie at stuart.condie@wsj.com

 

(END) Dow Jones Newswires

March 15, 2026 18:19 ET (22:19 GMT)

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