Janus Capital Group has purchased Challenger’s 25 per cent stake in global fixed income fund manager Kapstream Capital for $45 million, according to a statement by Challenger.
Challenger chief executive Brian Benari said while his company isn’t typically a seller of its boutique funds management equity interests, the move is expected to further develop Kapstream and Challenger’s Fidante Partners businesses.
“It realises value for shareholders, it provides continuity to Kapstream’s clients and business operations, through new service agreements, which we have signed with Kapstream and Janus, and it opens the door for further long-term strategic collaboration between the firms, including product development and distribution,” Mr Benari said.
Kapstream will continue to operate under its own brand with no change to its Australian activities, investment approach or client services. Fidante Partners will continue to provide distribution and operational support services to Kapstream in Australia through a renewed administration, distribution and responsible entity service agreements, according to the statement.
Kapstream’s chief investment officer Kumar Palghat will work alongside fixed income investor Bill Gross as part of Janus’ global macro fixed income business. The combined business will operate from both Kapstream’s base in Sydney and Janus’ Newport Beach, California, office.
In another statement by Kapstream, Mr Palghat said the purchase by Janus is “an incredibly exciting opportunity for Kapstream’s Australian clients and our staff”.
“Having spent nearly a decade apart refining our own approaches to global unconstrained fixed income investing, Bill and I now pool our combined thinking to the benefit of Kapstreem and Janus Global macro fixed income clients,” he said.
Janus Capital chief executive Richard Weil said “we are delighted to offer our clients the highest level of macro fixed income investment expertise with Bill Gross, Kumar Palghat and the highly sophisticated professionals that make up the Kapstream team”.
