AMP Capital to rebrand as Collimate Capital after demerger

Collimate Capital is on track to list on the Australian Securities Exchange this year with AMP Ltd retaining a 20% stake as a ‘passive shareholder’.

AMP Capital will become known as Collimate Capital following a planned demerger from parent AMP Ltd later in 2022.

The firm revealed the name change during its FY21 results announcement, with the firm’s demerger on track for completion in the first half of 2022. The new branding will be rolled out globally this year prior to the demerger.

AMP plans to list Collimate Capital on the Australian Securities Exchange but acknowledged in its FY21 results that it has received inbound enquiries about acquiring the business, which it said was “not unusual at this stage in a demerger process”.

“AMP will consider any approaches in line with its obligation to act in the best interests of shareholders,” the firm added. The firm has already entered into a binding agreement with Ares Management to sell AMP Capital’s infrastructure debt business for A$428 million ($307 million; €269 million), announced in December 2021.

AMP Ltd intends to retain a 20 percent stake in the new company, which will comprise all of AMP Capital’s private markets funds management business lines. Public markets investments will remain with the parent company. AMP said it would remain a “passive shareholder” in Collimate.

Collimate Capital has a separate board and executive leadership team in place, with Shawn Johnson commencing as CEO in June 2021 and Nadine Lennie set to join as CFO in April 2022.

AMP Capital made a net profit after tax of A$154 million in FY21, ending on 30 June 2021, up 17.6 percent from FY20’s profit of A$131 million.

The firm said that “strong AMP Capital performance fees in H2 21 from closed-end infrastructure funds [had delivered] strong returns to clients”, resulting from the successful sale of several assets.

In particular, the sale of UK rolling stock company Angel Trains and North Sea offshore vessels owner and operator ESAGT had contributed to these performance fees.

The fund manager’s assets under management declined 6.3 percent to A$177.8 billion (FY20: A$189.8 billion), which it said reflected capital returned to clients in infrastructure, the transition of the AMP Capital Diversified Property Fund to a new manager, and the transition of the firm’s New Zealand Wealth Management mandate. These AUM losses were partially offset by $15.6 billion in investment returns “driven by favourable market performance”, the firm said.

External net cash outflows rose dramatically to A$12.8 billion in FY21, up from A$1.7 billion in FY20, thanks to the transition of the Diversified Property Fund, asset sales, and redemptions of public markets products. These were partially offset by cash inflows of A$1.7 billion of committed capital deployed on behalf of real assets clients.

Overall, AMP Ltd made a statutory loss of A$252 million in FY21 (down from a A$177 million profit in FY20), primarily due to impairment charges and non-cash write-downs.

Commenting on the rebrand of AMP Capital, CEO Shawn Johnson said in a statement: “As a demerged entity, Collimate Capital will provide a greater level of independence, stability and accountability to further enable the delivery of superior results for all of our investors and act on growth opportunities to raise equity and deploy new capital.”

AMP explained the choice of new name as follows: “Collimate is a scientific term that means to make rays of light perfectly parallel. It is a metaphor for alignment, clarity and precision, which speaks to our vision and expertise in long-term value creation for our clients.”