Perpetual has confirmed it has entered into a binding agreement with private equity firm Bain Capital to sell its wealth management business, 13 months after a scrapped deal with KKR.

In an ASX statement, the two parties agreed to an upfront cash payment at completion of $500 million plus an earn out payment of up to $50 million, relating to the performance of the accounting and wealth operations of the wealth management business following completion, which will be tested and payable two years following completion.

Perpetual Wealth Management has around $21.9 billion in funds under advice as of 31 December 2025.

Additional transaction and separation costs, not already incurred and expensed as at 31 December 2025 in relation to the transaction, are expected to be approximately $30 million post-tax and expected to be incurred over a period of between 12 to 18 months.

As part of the transaction, Perpetual will licence the brands “Perpetual Wealth” and “Perpetual Private” to the Perpetual Wealth Management Group for a period of 15 years. Perpetual will continue to own all rights in the “Perpetual” brand.

Former Perpetual chief executive Geoff Lloyd will return to the lead the division as executive chair under Bain’s ownership.

Perpetual will provide transitional services relating to technology and other operational services, and incidental matters to the Perpetual Wealth Management Group for up to 18 months following completion, with an option for the Perpetual Wealth Management Group to extend those services for up to a further six months.

Net cash proceeds from the transaction will be used to reduce debt and support investment in organic growth in the Asset Management and Corporate Trust businesses.

The move follows a prior agreement to sell the wealth management division to KKR which fell through in February 2025 for tax reasons.

Completion of the deal is expected to complete by the end of 2026 calendar year but is subject to regulatory approvals and to Perpetual completing the corporate restructure required to separate wealth management from the broader Perpetual business.

Perpetual CEO and managing director, Bernard Reilly, said: “Following a thorough sale process, we believe we have achieved the right outcome for our shareholders, clients and people, and one that reflects wealth management’s longstanding reputation as a premium provider of high net worth advisory, fiduciary, philanthropic and not-for-profit offerings in the Australian market.

“This is a pivotal step in our strategy to simplify and transform Perpetual. Following completion, Perpetual will have a stronger balance sheet and more simplified business, focused on two core businesses, asset management and corporate trustee services, while also enhancing its ability to invest for future growth and deliver improved shareholder returns over the longer term.

“We believe we have found the right owner for the wealth management business to help it continue to grow and deliver high quality products and services to its clients. Today’s announcement also provides clarity and certainty for our teams, who have continued to show an exceptionally high level of professionalism, commitment and focus throughout this process.”

Lloyd said: “Under Bain Capital’s ownership Perpetual Wealth Management will have the freedom to modernise, to innovate, and to grow, without losing sight of the values and heritage that define it. It is an exciting opportunity to create even more value for our clients and our people.”

Australian-based Bain partner Charles Lawson said: “The Australian wealth sector is growing strongly, underpinned by macro trends including an aging population, wage growth, and the need to manage intergenerational transfers of $5 trillion over coming decades. Against this backdrop, financial advice in Australia remains highly fragmented and we believe there will be opportunities to help drive consolidation through the Perpetual Wealth Management business.”