AMP has entered into a binding agreement with Macquarie Asset Management to sell AMP Capital’s Global Equities and Fixed Income (GEFI) business for up to A$185 million.

The sale effectively includes the New Zealand business.

AMP says the sale delivers its strategy to focus on high-growth opportunities in private markets across real estate, infrastructure and associated adjacencies, and is an important step in preparing the business for its planned demerger from AMP Limited in the first half of 2022.

The transaction delivers on the previously announced strategy for the AMP Capital public markets business to increase the scale of GEFI through partnerships or sale. AMP Capital is also in the process of transferring the Multi-Asset Group business to AMP Australia to create an end-to-end superannuation and investment platform business.

AMP Capital’s GEFI business currently manages A$60 billion in assets under management for AMP Australia as well as a number of external institutional, retail and direct clients.

Under the sale agreement, AMP Capital’s capabilities in Australian and global listed equities and global fixed income will be combined with Macquarie’s public investments platform.

As part of the Macquarie Group, GEFI will be positioned to further improve its high-quality client service offering and to expand its client base and product set over time. The transaction will also allow GEFI to benefit from Macquarie Asset Management’s scalable global operating platform.

Head of Macquarie Asset Management Ben Way said; “This transaction represents another opportunity to add high-quality, complementary capabilities as we continue to scale the Macquarie Asset Management public investments platform.

"It cements Macquarie’s position as the leading investment manager in Australia by assets under management and allows us to further diversify our client offering and bring new opportunities to clients joining us from AMP Capital.”