Updated: Jul 12, 2021 3:24 PM
Athene Holding Ltd led a minority investment in Challenger Ltd, an Australian investment management company.
The Bermuda-based financial services firm said it has agreed, together with its strategic partner, Apollo Global Management, to acquire a 15% stake in Challenger from an existing shareholder, of which 3% is subject to the Australian usual prudential regulator. approval.
Combined with other Challenger shares acquired by Athene and Apollo, the acquisition of the 15 percent stake will result in an expected total minority economic stake of 18 percent for approximately $ 540 million, the company said.
Athene and Apollo said they see exciting long-term opportunities in teaming up and supporting Challenger’s continued growth as minority shareholders.
Athene said that Challenger and Challenger share the same mission: to provide clients with financial security for retirement.
He added that Challenger is Australia’s preeminent platform for annuities and investment management, with A $ 21 billion in life investment assets and A $ 104 billion in total assets under management as of March 31. .
Athene and Apollo said they believe Challenger is well positioned to continue serving the large and growing Australian retirement market.
The company said the investment follows Athene’s ongoing deal to merge with Apollo, combining the two companies to create a global solutions provider focused on delivering superior investment returns and retirement income.
Entering the Australian market through this investment in Challenger is a natural extension of that vision and follows other new business initiatives that Athene has undertaken in the UK and Japan over the past two years, a declared the company.
Jim Belardi, CEO of Athene, said: âInvesting in Challenger represents an exciting opportunity for us to support a well-established platform in the Australian market, a geography that we have studied given current economic conditions and demographic fundamentals. convincing.
âIn many ways, Challenger is the ideal partner for us: the company is led by an experienced management team, has a strong market position, attractive growth prospects and shares our deep commitment to retirees.
âTogether, we believe we can help Challenger continue to create long-term value, similar to what we have been able to achieve by expanding Athene’s business in the United States and supporting the growth of our sister company Athora. in Europe, where we are also minority shareholders. “
Jim Belardi, CEO of Athene (file photo)