In a filing with the Securities and Exchange Commission on Friday in the United States, Ares Management said due diligence and “discussions” with AMP were “very preliminary and there is no certainty that a transaction will occur.” will produce on the terms offered, within a particular time frame, or not at all”.
The $256 billion asset management group said it “constantly assesses
many strategic opportunities” that can complement its core credit, private equity and real estate groups, which often involves making non-binding indicative proposals.
“Any potential transaction would be subject to a variety of conditions and structural considerations, including extensive due diligence, assessment of the divestiture of certain assets or non-core businesses, and may involve third-party co-bidders,” it said. he declared.
Amid the sale process and fallout from the Mr. Pahari case, AMP continues to suffer leadership cuts.
Howard Marks, AMP’s director of investor relations since January 2008, is due to leave after the group’s annual results in February next year.
Mr Marks, who has been with the group for three decades, told colleagues late last month that he would leave AMP but had been asked to stay on until the end of the company’s annual accounts. ‘business.
Things had been tense in recent years for Mr. Marks, who had the honor of presenting senior management with the views of long-suffering institutional and retail shareholders.
Shares of AMP jumped 20% on Friday ahead of the Ares Management takeover, but the stock remains 20% lower than its price before Mr Pahari’s promotion and 70% lower than before the Royal Banking Commission.
Among those also leaving the firm is AMP Capital’s co-head of people and culture, Lauren Crystal, who was only promoted in July by Mr Pahari to replace Madeleine Mac Mahon who resigned the same month after 12 years in this position. Ms Mac Mahon was on long-term leave when the initial complaint against Mr Pahari was filed in May 2017.
Ms Crystal’s personal LinkedIn profile said her employment with AMP Capital ended in October and she was now “open for work”.
Ms. Crystal had been a strong supporter of Mr. Pahari. Respond to numerous employee comments posted on an internal AMP online bulletin board, following The Australian Financial Review investigation into the promotion of Mr. PahariMs Crystal said in July she was “excited about the future” at AMP under Mr Pahari and was “happy to talk to anyone who doesn’t share my excitement”.
However, less than two months later in September, in an internal email announcing widespread layoffs and changing management roles due to Mr Pahari’s subsequent demotionAMP chief executive Francesco De Ferrari said Ms Crystal would report to a demoted Mr Pahari and AMP Group people director Rebecca Nash.
A spokesperson for AMP declined to comment.
Mr. Pahari, head of infrastructure equities at AMP Capital, is back based in London, overseeing the group’s North West region in Europe and North America.
Since returning to London from Australia, following shareholder pressure that forced the departure of chairman David Murray and fellow director John Fraser, Mr Pahari has called colleagues and apologized for the implosion of the business that coincided with his short promotion.
Prior to a searing public statement made by Julia Szlakowskithe former AMP Capital employee who had to leave the company after alleging she was sexually harassed by Mr Pahari in 2017, many of Mr Pahari’s UK-based colleagues had rallied behind him.
It included an email signed by nine women from AMP Capital in the UK – where Mr Pahari was based – saying their experience of the man was ‘at odds with what has been portrayed in the media’ .
Now colleagues familiar with the situation say AMP Capital’s infrastructure boss has less stringent support, especially as Mr Pahari allegedly repeatedly used a “limp dick” analogy when Ms Szlakowski declined his offer to use her credit card to buy clothes, wanted her to use an encrypted messaging app to avoid AMP scrutiny, called another employee a “queer,” and spent the money. company money to fund international travel when it was not considered necessary by other AMP Capital officials.
Sources from AMP Capital and sources from the private equity market in Europe and North America have suggested that the company has had a harder time attracting capital into its investment strategies since the saga.
In its September quarter update, AMP Capital was hit by $1.1 billion in net external cash outflows as investors redeemed funds. The company also suffered cash outflows after mandates held by its former life insurance division, sold to Resolution Life, were opened up to competition for the first time. AMP Capital also lost $1.3 billion as AMP superannuation and financial advice clients withdrew funds.
The role of CEO of AMP Capital was one of the highest paying executive positions in the company, with the propensity to earn an “uncapped” performance bonus. Not counting his last year at the company, former AMP Capital boss Adam Tindall took home $14 million in his last five years in the role.
Following a series of revelations by The Australian Financial Review in July and August, which helped trigger the resignation of AMP Australia’s Managing Director, Alex Wade, amid allegations that he sent explicit images to female colleaguesMr Pahari had engaged in an “advocacy strategy” to build support within the company.
Several junior and senior sources said Ms Crystal also encouraged employees to support Mr Pahari. While in Sydney, Mr. Pahari made a habit of publicly thanking people who had positively commented on his leadership on AMP’s internal workspaces.