AMP demerging AMP Capital; Pahari to depart

AMP Capital's Boe Pahari will depart the organisation following the announcement that AMP will demerger AMP Capital's private markets investment management business.

"Our portfolio review confirmed that AMP has two distinct businesses in retail wealth and institutional private markets," said AMP chair Debra Hazelton. "From the extensive work that has been done we believe that operational and structural separation will significantly benefit both business units. The Private Markets business operates in growing, global markets in which investment management talent and strong client relationships are critical."

The news comes after AMP's board rejected the takeover offer from US-based Ares Management Corporation.

Pahari, who had a brief tenure as AMP Capital CEO, stepped back into the role of global head of infrastructure equity. In a statement, a spokesperson for AMP Capital said, "Mr Pahari will work closely with the Infrastructure Equity leadership team to ensure a smooth transition."

The new Private Markets business is in the process of searching for a chief executive officer. Ex-Cbus chief David Atkin is leading the business in the interim.

Pahari joined AMP in 2010 following an international career in infrastructure equity. He spent time with CBA and ABN AMRO in North America, Europe, and Asia. Pahari started his career with Citigroup in Sydney.