Financial services giant Perpetual (ASX:PPT) entered into a binding agreement to sell its Wealth Management business to Bain Capital Private Equity.
The deal, structured as a sale of all shares in Perpetual PWM Services, marks a strategic pivot for the historic firm as it seeks to streamline its operations and focus on its core asset management and corporate trustee divisions.
The transaction features a substantial financial package, headlined by an upfront cash payment of $500 million at completion.
The figure is subject to standard adjustments for regulatory and working capital.
Additionally, the agreement includes performance-based incentives: a potential secondary upfront payment of up to $50 million based on the advice business' pre-completion performance, and a further $50 million earn-out tied to the accounting and wealth operations over the two years following the handover.
As part of the deal, Perpetual will licence the "Perpetual Wealth" and "Perpetual Private" brands to Bain Capital for 15 years, while retaining full ownership of the primary "Perpetual" trademark.
CEO Bernard Reilly described the sale as a "pivotal step" in transforming the company into a leaner, more focused entity.
Net proceeds from the divestment are earmarked for debt reduction and organic growth investment.
Following completion, expected in late 2026, Perpetual anticipates a robust balance sheet with a pro-forma net debt to EBITDA ratio of approximately 0.2x.
At the time of reporting, Perpetual’s share price was $16.48.