AMP has announced it will pursue a demerger of its private markets arm, while a controversial executive will exit the business.
After failing to reach a deal with US investment manager Ares, the wealth giant announced on Friday it would pursue a demerger of AMP Capital’s private markets arm consisting of infrastructure equity, infrastructure debt and real estate.
“The proposed demerger follows a decision by the AMP board to conclude discussions with Ares Management Corporations regarding a potential sale of Private Markets,” the group said.
AMP said the demerger would create “two more focused businesses” in the retail-focused wealth management business AMP, and the “leading global investment manager” private markets.
AMP would retain a 20 per cent stake in the private markets business as well as AMP Capital’s global equity and fixed income business, for which it was “currently exploring partnership options”.
As a result of the separation of that part of the business, AMP said, AMP Capital global head of infrastructure equity and north-west region Boe Pahari would exit.
Mr Pahari, who was given the role of chief executive of AMP Capital last year, was demoted following a scandal around previous sexual harassment claims against him.
David Atkin would lead the private markets business on an operational basis until a new separate chief executive could be found, while Alexis George would join AMP as its new head in the third quarter.
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