Athene targets growth in Australia with Challenger investment
Athene Holding, the retirement services company, will acquire a 15 percent minority interest in Challenger, an Australian investment management firm that provides retirement products, alongside its strategic partner, Apollo Global Management.
Athene and Apollo will acquire the stake from an existing shareholder, with 3 percent of the stake subject to customary Australian Prudential Regulation Authority approval.
Following the acquisition Athene and Apollo expect to hold a minority economic interest of 18 percent, for approximately A$720 million ($540 million).
Athene said it shares the same mission with Challenger: providing customers with financial security for retirement. Challenger provides annuities and investment management in Australia, with A$21 billion of life investment assets and A$104 billion of total assets under management as of March 31, 2021.
Jim Belardi, chief executive officer at Athene, said Challenger represents an exciting way to grow the business in Australia via a well-established platform. “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,” he said.
Athene has a 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, it said, and follows other new business initiatives Athene has undertaken in the UK and Japan over the last two years.
Athene and Apollo are represented by Sidley Austin as legal counsel.
