US-based Genworth Financial has closed the sale of its wealth management business to a partnership of Aquiline Capital Partners and Genstar Capital.
The sale of the firm’s wealth management business, which includes Genworth Financial Wealth Management and alternative solutions provider, the Altegris companies, is US$412.5 million.
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Genworth Financial said that it will record an additional after-tax loss of up to US$10 million related to the sale in the third quarter of 2013.
The company will get proceeds of approximately US$360 million, net of transaction costs and payments to settle obligations to the former owners of its Altegris businesses.
Genworth said it will use the money, together with cash on hand at Genworth Holdings, to address its remaining 2014 debt at maturity or before.
Genworth Financial CFO Martin Klein said: "This transaction represents another milestone in our plan to turn the company around as we increase financial flexibility for Genworth.
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By GlobalData"The sale, along with our recent senior notes offering, is important steps that put us in a position to improve financial leverage and address near-term debt maturities.
"We believe this sale provides the Wealth Management business and their new owners a strong platform to grow going forward, and we thank the employees of the business for their contributions to Genworth," Klein added.
