Deal expected to transform Perpetual into a global asset management business

  • KKR to acquire Perpetual’s corporate trust and wealth management businesses for A$2.18 billion
  • Deal expected to be completed in February 2025
  • Perpetual to become a stand-alone, global multi-boutique asset management business
  • Valuation of 16.3 times last 12 months’ earnings before interest and tax
  • Perpetual CEO to retire after completion of the deal
  • Board unanimously recommends shareholders vote in favor of the scheme

Private equity firm KKR has agreed to purchase Perpetual’s corporate trust and wealth management businesses for A$2.18 billion. The deal, which is expected to be completed in February 2025, will see Perpetual transition into a stand-alone, global multi-boutique asset management business. The valuation of the businesses is 16.3 times their last 12 months’ earnings before interest and tax. Following the completion of the deal, Perpetual’s CEO will retire. The board has unanimously recommended that shareholders vote in favor of the scheme.

Factuality Level: 9
Factuality Justification: The article provides a straightforward report on the agreement between KKR and Perpetual to sell the corporate trust and wealth management businesses. It includes relevant details such as the deal value, the strategic review by Perpetual, the involvement of KKR, and the expected completion timeline. There are no signs of sensationalism, bias, or misleading information in the article.
Noise Level: 3
Noise Justification: The article provides relevant information about the acquisition of Perpetual’s corporate trust and wealth management businesses by KKR. It includes details about the deal, the valuation, the expected completion date, and the impact on Perpetual’s CEO. The article stays on topic and does not contain irrelevant or repetitive information. However, it lacks in-depth analysis, antifragility considerations, and accountability of powerful people, which prevents it from scoring higher.
Financial Relevance: Yes
Financial Markets Impacted: The sale of Perpetual’s corporate trust and wealth management businesses to KKR may impact the financial markets and companies involved in the asset management industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses a financial transaction between Perpetual and KKR, which has the potential to impact the financial markets and companies involved. However, there is no mention of any extreme event or its impact.
Private Companies: Perpetual,KKR
Key People: Rob Adams (Chief Executive of Perpetual), Alice Uribe (Author)

Reported publicly: www.wsj.com