Mega US private equity firm KKR and minority shareholder Commonwealth Bank (CBA) announced their interest to put Colonial First State (CFS) back on the market, seeking a $5bn+ price tag. KKR which owns 55% of the business is pulling the classic private equity move: acquire a high-quality company, improve its operations and sell for the highest possible price.
CBA, which now holds the remaining 45% stake after selling its majority interest to KKR in 2021, has the opportunity to recycle capital back into its core banking business and ultimately strengthen its balance sheet.
More broadly, the CFS sale flags a potential 2026 theme where private equity firms are moving into exit mode. After years of acquiring assets in a low-rate environment, in addition to the today’s improved market confidence, have made exits increasingly attractive.
