NEW YORK (AP) — Genworth Financial Inc., an insurance holding company, is selling its wealth management business for about $412.5 million to a partnership of private equity firms Aquiline Capital Partners and Genstar Capital.
The sale includes Genworth Financial Wealth Management and Altegris, which provides liquid alternative mutual funds, hedge funds and other offerings.
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Genworth said in announcing the deal after the markets closed Wednesday that it will post a loss of about $40 million on the sale, with about $35 million to be recorded in the first quarter. The Richmond, Va., company said the sale of the non-core business will increase its financial flexibility. It plans to use proceeds to pay down debt.
Aquiline is based in New York, while Genstar is based in San Francisco.
The sale is subject to regulatory approval and is expected to close in the second half of the year.
Genworth shares closed at $10.19 on Wednesday. Its shares rose to a high for the past year of $10.74 on March 11. They traded as low as $4.06 per share in early August 2012.
