Australian banking group Westpac has agreed to offload its funds management business Westpac Ascalon Capital Managers to Generation Development Group (GDG). Financial terms of the transaction were not disclosed.
GDG, a diversified financial services firm, will make an initial investment in Ascalon and take up the fund manager’s full ownership upon completion of the deal.
However, the deal excludes firms in which Ascalon owns an interest. The transaction is expected to close in March next year, subject to regulatory approval.
Ascalon, now deemed to be a non-core business, will retain minority equity stakes in Morphic Asset Management and Deepwater Capital.
BT will cooperate with GDG and all investment management firms during the transition process. Along with Westpac, BT will also continue to be investor in certain investment funds managed by the firms.
“While Ascalon has a strong record as a leading incubator and partner of boutique fund managers in the Asia Pacific, BT Financial Group (“BT”) has decided it is no longer a core business and has decided to exit,” Westpac said in a statement to the Australian Securities Exchange.
In November 2017, Westpac sold its infrastructure management business Hastings to UK-based asset manager Northill Capital. Hastings was rebranded as Vantage Infrastructure in April this year.