Global investment firm Brookfield Asset Management and British banking major Barclays have announced a long-term partnership to transform Barclays’ UK payment acceptance business into a standalone entity. The partnership combines Barclays’ established client relationships with Brookfield’s global capabilities in operational transformation and corporate carve-outs. The business plays a critical role in the UK economy, processing billions of dollars in payments annually for businesses. Barclays plans to invest approximately $500 million, primarily within the first three years. Furthermore, starting in year three and through year seven, Brookfield may acquire a 70% ownership interest at market value, subject to Barclays’ full recovery of its investment. Upon sale, Brookfield’s initial incentive will convert into an additional 10% stake, giving it 80% total ownership. Barclays will retain approximately 20%, and the “Barclaycard Payments” brand will continue to serve Barclays’ clients exclusively for at least 10 years.
Additionally, this is the first transaction under Brookfield Financial Infrastructure Partners, a strategy focused on digital assets enabling global financial systems. Brookfield has already deployed over $5 billion in similar deals, including its partnership with First Abu Dhabi Bank and acquisition of Network International. Matt Hammerstein, CEO, Barclays UK Corporate Bank, said, “Finding a partner to support us in transforming our payment acceptance business, in a way that will enable us both to serve our clients’ interests better and pursue a path to releasing value from the business, demonstrates clear execution of our three-year plan to become a simpler, better and more balanced bank.” Sir Ron Kalifa, Vice Chair and Head of Financial Infrastructure at Brookfield, added, “Payments systems need to adopt a digital-first and data-led approach to provide world-class solutions to clients.”
