8-KOther Events

AFFILIATED MANAGERS GROUP, INC. 8-K Report, Corporate Update (Oct 18, 2022)

Filed October 18, 2022For Securities:AMGMGRBMGRMGRDMGRE

Summary

Affiliated Managers Group, Inc. (AMG) has officially completed the sale of its equity interest in Baring Private Equity Asia (BPEA) to EQT AB. This significant transaction, initially announced in March 2022, resulted in AMG receiving substantial pre-tax consideration of $240.0 million in cash, along with 28.68 million ordinary shares of EQT. This sale represents a strategic divestment, allowing AMG to monetize its investment in BPEA while also positioning itself to benefit from future potential upside through retained interests in certain existing BPEA funds. The EQT shares received are subject to standard market practices, with 25% of the shares having a six-month lock-up period, indicating a controlled reentry into the market for these securities.

Key Highlights

  • 1Completion of the sale of AMG's equity interest in Baring Private Equity Asia (BPEA) to EQT AB.
  • 2AMG received $240.0 million in pre-tax cash consideration.
  • 3AMG received 28.68 million ordinary shares of EQT.
  • 4AMG will retain future "carry" (profit share) in certain existing BPEA funds, providing ongoing economic interest.
  • 525% of the EQT ordinary shares received are subject to a six-month lock-up period.

Frequently Asked Questions

AMG received $240.0 million in pre-tax cash and 28.68 million EQT ordinary shares. This sale allows AMG to realize value from its BPEA investment and potentially benefit from the future performance of EQT.

Yes, AMG will retain future 'carry,' which represents its share of profits, in certain existing BPEA funds. This means AMG can still profit from the performance of specific investments made prior to the sale.

Yes, 25% of the EQT ordinary shares received by AMG are subject to a six-month lock-up period. This restriction prevents AMG from selling these shares immediately, which is a common practice to prevent market disruption.

EQT AB is the acquiring company, and it is a public company listed on Nasdaq Stockholm under the ticker symbol EQT.ST.