Westpac Banking Corp. agreed to sell infrastructure boutique Hastings Funds Management to Northill Capital.
Global infrastructure manager Hastings is headquartered in Australia and has A$12.6 billion ($9.7 billion) in assets under management. It employs staff across offices in Melbourne, Sydney, London, New York and Asia.
Australian banking firm Westpac acquired 51% of Hastings in 2002 and the remaining 49% in 2005. To align with investors, certain Hastings employees, including key investment staff and senior management, have significant ownership in Hastings through a long-term incentive plan, according to Hastings' website.
Money management firm Northill invests in high-quality, specialist money management firms and owns a majority interests in a number of businesses, representing $48 billion in assets under management. Northill focuses on investing in a long-term partnership, "supporting the continued development of Hastings as an independent asset management business and providing significant co-investment capital to enhance alignment with investors," said a joint news release by Northill and Westpac on Friday.
A statement from Northill said: "The finer detail is still to be worked out, but Hastings management will invest alongside Northill, rolling existing equity and other entitlements into the firm, and Northill intends to grant new equity. Management equity is expected to be in the low double digits initially and grow over time."
The statement added that there are no plans to change the management team, but Northill "will look to appoint an experienced chairman."
The terms of the agreement are confidential and the deal is subject to due diligence and regulatory approvals.
Westpac said in August it had ceased discussions with real estate investment boutique Charter Hall regarding a proposed sale of Hastings.