Colonial First State, AMP and Macquarie in battle for Westpac’s Panorama wealth unit

In November, Westpac said it had more than 230,000 customers with about $105bn of funds under administration on the Panorama platform. Picture: NCA NewsWire / John Gass

The three key trade buyers battling it out for Westpac’s wealth management unit are believed to be Colonial First State, AMP and Macquarie Group.

Bids went in about three weeks ago for Westpac’s Panorama business, and while the three trade buyers are thought to be the strongest contenders, it is understood that private equity firms are also interested. Netwealth is likely to be in the mix but will probably partner with another group.

The understanding is that much of the separation work will need to still be completed after a sale agreement has been reached.

AMP has been scouring the market for partners with which to bid for the business.

Macquarie has a superior technology platform, but a deal may not make sense because it could lose customers from its existing business.

CFS is 55 per cent-owned by Kohlberg Kravis Roberts and has always been seen as the party to beat. But some believe there is more urgency for AMP to buy the operation; after selling its funds management arm Collimate Capital to DigitalBridge and Dexus Property it needs to find a new earnings channel.

AMP chief executive Alexis George told the market in November, soon after she started, that AMP would be a retail-focused wealth management, investment and banking group.

Westpac’s BT Panorama wrap platform offers access to a range of tradeable securities and investment wrappers. Many expect it to be worth between 17 and 19 times its earnings of about $100m, but some believe its price is closer to $1bn.

In November, Westpac said it had more than 230,000 customers with about $105bn of funds under administration on the Panorama platform.

Wealth management platforms require major spending on technology and any new buyer of BT Panorama will probably need to invest further in the technology of the business.

BT Panorama boasts of having the most adviser relationships in the market. It manages investment portfolios, self-managed super funds, superannuation and insurance.

The sale comes in a busy a period in the financial services space, with Perpetual recently launching a $2.4bn bid for Pendal that was rebuffed.

Perpetual was in the crosshairs of a global buyout fund last year and some believe Macquarie has its eye on the business.

One observer said that while Macquarie liked to grow funds under management, retail funds were less attractive to the Australian listed financial.

Meanwhile, Chrysos’s disappointing sharemarket debut on Friday is likely to be a crushing blow to equity capital market operatives and companies hoping to list in the months ahead.

The gold mining analysis firm saw its share price fall more than 36 per cent.

The only major float prospect in the market right now is the $2bn carbon trading platform Xpansiv, which is due to set its price around the middle of this week.

Others are likely to defer their deals until the market conditions improve.