Perpetual to sell wealth management arm to Bain Capital for $350 million upfront

March 16 (Reuters) - Australia's Perpetual Limited PPT.AX said on Monday it agreed to sell its wealth management business to private equity firm Bain Capital for an upfront cash payment of A$500 million ($350 million).

The deal also includes a potential additional upfront payment tied to the advice business' performance before completion, as well as an earn-out of up to A$50 million linked to the performance of its accounting and wealth operations after completion.

Shares of Perpetual were up 1.9% at A$16.54 as of 2301 GMT.

Founded in 1886, Perpetual has been the target of several takeover approaches in recent years.

In 2022, it rejected a A$1.7 billion takeover bid from a consortium including portfolio manager Regal Partners RPL.AX, and the following year it turned down a A$3.1 billion offer from its largest shareholder, Washington H Soul Pattinson.

Perpetual Limited also unveiled a A$2.18 billion deal with KKR in 2024 to sell its wealth management and corporate trust businesses but later terminated talks with the buyout firm, saying it would instead pursue a separate sale of its wealth management business.

Foreign firms have been vying for a foothold in Australia's wealth management and retirement savings sector. Superannuation and wealth manager Insignia Financial IFL.AX was at the centre of a A$3.3 billion takeover tussle last year, with several bidders, including Bain Capital, expressing interest in the firm. The company eventually agreed to a takeover offer by CC Capital Partners.

Perpetual Chief Executive Bernard Reilly said on Monday that the transaction marked a pivotal step in the company's plan to streamline its structure and focus on its two core businesses.

The unit generated A$235.6 million in revenue in 2025, up from A$226.8 million a year earlier, while underlying profit before tax was A$51.5 million, down 5% from the previous year.

Perpetual added that it expects to complete the transaction toward the end of the 2026 calendar year.

($1 = 1.4306 Australian dollars)