KKR, CBA in Westpac investment platforms bid

Westpac has engaged Morgan Stanley for the sale of its investment platform business. Picture: John Gass

Westpac took receipt of indicative bids for its investment platform business on Wednesday as the $1bn-plus auction fires up.

DataRoom understands a consortium comprising private equity firm KKR and the Commonwealth Bank lodged an offer.

They are taking advice from JPMorgan on the potential acquisition.

KKR and CBA jointly own Colonial First State which is considered a frontrunner to buy the Westpac business.

Strategic players such as Macquarie Group and Netwealth were also expected to have lobbed first-round bids, as well as several private equity suitors who took sale documents. AMP received sale documents but it is unclear if it made a non-binding offer.

Funds under administration on Westpac’s investment platforms amount to $139.3bn, with the bulk reflecting the Panorama platform.

A platform holds investments, such as managed funds and shares in one place and is used by financial advisers and individuals for centralised reporting. Back office and tax services are also often provided by platforms.

Interested parties will be waiting for Westpac’s shortlist in coming days as the sale process enters its next phase. Morgan Stanley is tending to the bank on the divestment.

Separately, AMP has quietly delayed its first-quarter funds under management update which analysts had been anticipating would hit the ASX on Thursday.

The wealth and asset manager has yet to schedule a new date for the update, but some think it may coincide with an announcement on the sale of Collimate Capital’s local assets to Dexus.

The Australian revealed a transaction of up to $300m between AMP and Dexus for the sale of the local real estate and infrastructure platform was being finalised. It is set to be announced as early as this week.

One analyst said key to the transaction for Dexus would be concessions it would make, if any, in order to keep wholesale investors in the Collimate Capital-run funds satisfied.

The analyst tipped some duplicate corporate costs and spending required to make Collimate Capital into a public company – which was to be chaired by ex-banker Patrick Snowball – would be stripped out.

“The cost story is going to be a big one,” they said.

Dexus also faces the challenge of going from a real estate funds manager to also housing infrastructure funds with about $7bn of assets.

The bidding for AMP’s international infrastructure business is down to two parties with Apollo Global Management and DigitalBridge vying for the division.