AMAL Group will, subject to regulatory approval of the transaction, be rebranded under the IQ-EQ name.

IQ-EQ has agreed to acquire the AMAL Group, a provider of corporate trust, agency services and loan servicing solutions with operations in Australia and New Zealand. 

This transaction is subject to regulatory approval from the Foreign Investment Review Board (FIRB) in Australia, IQ-EQ said in a statement yesterday. The purchase price wasn’t disclosed. 

“This investment marks a significant milestone in our global expansion strategy, with an exciting opportunity to secure an important presence in two key new markets and take ownership of a leading corporate trustee, agency services and administration business,” Mark Pesco (pictured), group CEO at IQ-EQ, said. 

As and when regulators approve the transaction, AMAL Group will be rebranded to IQ-EQ, and the newly-combined global IQ-EQ team will total 6,000 with an operational presence across 27 jurisdictions globally

IQ-EQ said it was acting against the backdrop of “accelerated growth in Australia’s corporate trust market due to strong continued year-on-year double-digit growth in the securitisation market driven by regional growth in the non-bank lender (non-ADIs) market”. 

In Australia, superannuation [pension fund] assets projected for 2025 are to total $4.1 trillion and $11.5 billion in alternative investment flows, such as infrastructure, real estate, and private equity. As interest rates ease, private market fund managers are increasingly moving more into this market, with high single-digit growth expected across real assets, private credit and private equity. These market conditions are causing demand to rise for sophisticated, end-to-end trustee and loan administration solutions. 

AMAL Group has more than A$37 billion ($23.5 billion) of funds under administration and supervision in Australia and New Zealand. It is an integrated provider of loan servicing, corporate trust and agency services.                                                                                                       

The acquisition includes AMAL Asset Management Limited, AMAL Corporate Holdings Pty Limited and their subsidiaries collectively.

Former AMAL Group princpals, Nick Procter and Tony Grant, who will continue to lead the business, will join the senior leadership team of IQ-EQ Asia.

Nomura financially advised IQ-EQ on this transaction.