Athene Leads Minority Investment In Challenger
Athene Holding Ltd along with its strategic partner, Apollo Global Management have agreed to acquire a 15% minority interest in Australia’s Challenger Limited.
A spokesperson said, “Athene Holding Ltd. [Athene], a leading retirement services company, announced that it, along with its strategic partner, Apollo Global Management [Apollo], have agreed to acquire a 15% minority interest in Challenger Limited [Challenger] from an existing shareholder, 3% of which is subject to customary Australian Prudential Regulation Authority approval.
“When combined with other Challenger shares acquired by Athene and Apollo, the acquisition of the 15% equity interest will result in a total expected minority economic interest of 18% for approximately A$720 million [or US$540 million]. Athene and Apollo see attractive long-term opportunities in partnering with and supporting Challenger’s continued growth as minority shareholders.
“Athene and Challenger share the same mission – to provide customers with financial security for retirement. Challenger is the preeminent platform in Australia for both annuities and investment management, with A$21bn of life investment assets and A$104bn of total assets under management as of March 31, 2021. Athene and Apollo believe that Challenger is well-positioned to continue serving Australia’s sizable and growing retirement market.
“Investing in Challenger represents an exciting opportunity for us to support a well-established platform within the Australian market, a geography we have been studying given the current economic conditions and compelling demographic fundamentals,” said Athene CEO Jim Belardi.
“In many ways, Challenger is the perfect 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. Together, we believe we can help Challenger continue to build long-term value, similar to what we’ve been able to achieve in building Athene’s business in the U.S. and supporting the growth of our sister company Athora in Europe, where we are also minority shareholders.”
“This investment follows Athene’s pending agreement to merge with Apollo, combining the two companies to create a leading 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 Athene has undertaken in the United Kingdom and Japan over the last two years.
“Athene and Apollo are represented by Sidley Austin LLP as legal counsel.”
