Ares Management is buying AMP's infrastructure debt business for A$428 million ($307 million), according to news releases issued by both companies Thursday.
Ares is financing the transaction with cash on hand and a $1.1 billion revolving credit facility.
AMP's infrastructure debt business had about $8 billion in assets under management as of Sept. 30. The transaction values the business at about A$578 million, AMP said in its news release.
This is not the first time Ares has attempted a deal with AMP. The two companies in February agreed to pursue, but never completed, a A$2.25 billion joint venture for AMP's private markets business.
The transaction announced Thursday is expected to close in the first quarter of 2022.
Upon closing, Ares' new infrastructure debt business will be led by Patrick Trears, currently global head of AMP's infrastructure debt business. It will part of a new Ares segment to be called Ares Real Assets Group, which will also include Ares' real estate and infrastructure equity businesses.
The new Ares real assets business unit is expected to have a combined $48 billion in assets under management.