Australia's NAB to sell MLC wealth management arm

Divestment of the business, which also has one of Australia’s largest and most international private equity programs, will be realized through either a demerger and IPO, or a trade sale. Transaction details are expected to be set next year.

“I think with some independent ownership and greater investment, [MLC] can really be a very sustainable and growing business in the whole superannuation field,” Andrew Thorburn, NAB’s CEO told reporters at a media conference. “But, in the bank, we need to simplify the bank. The complexity in the bank is just killing us.”

It coincides with similar streamlining moves by other domestic lenders, including Commonwealth Bank and ANZ Bank, as well as the disclosure of negative financial results from NAB. The bank’s half-yearly report recorded a 21% decline in profit during the six months to March at A$2.6 billion ($2 billion). MLC has come to represent about 4% of NAB’s total earnings since being purchased in 2000.

NAB has A$195.3 billion in assets under management as of September 2017 and MLC has about A$75 billion in assets as of June 2017. MLC’s core superannuation and pension products have invested in private equity since 1997. As of December 2017, they had 2-8% of their respective portfolios to the asset class.

MLC was founded in 1886 as The Mutual Life & Citizen’s Assurance Co, and is active across superannuation, insurance, and direct investment. Recent activity in the private equity space includes participation last month in the acquisition of marine engineering business AMS Group by Australia’s Colinton Capital Partners.

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• Topics
• Australasia
• LPs
• Australia
• MLC Private Equity