Australian investment manager Channel Capital has teamed up with New York firm Kudu Investment Management for a management buyout, waving goodbye to minority stakeholder Highbury Partnership.
Upon completion of the transaction, which is subject to approvals and expected to wrap up this month, Channel’s employee shareholders will control a greater share of the group.
Kudu, a provider of capital solutions to asset and wealth managers, is providing financing for the buyout and additional capital for the firm. Kudu will own a passive minority share in the business.
Glen Holding, co-founder and managing director at Channel, commented: “While the business has prospered in partnership with Highbury, we’ve reached the next level of growth, requiring a renewed strategy to both consolidate and capitalise on what we’ve built.
“Partnering with Kudu will greatly enhance our ability to pursue larger growth opportunities both within and outside of Australia.”
Charles Ruffel, chairman and managing partner of Kudu added the deal is his company’s first transaction in Australia.
With Channel, Kudu will have 14 affiliated firms that collectively manage or advise around US$75 billion on behalf of individual and institutional investors in traditional and alternative strategies, as at 30 September. Channel Capital is partnered with eight investment management firms. Channel, which is a multi-affiliate company, services more than $16 billion in assets.
It provides incubation, operation, distribution, marketing and responsible entity services to a group of investment management companies across institutional, family office, high-net-worth and adviser-led investors in Australia and New Zealand.
Its subsidiary, Channel Investment Management, is licensed as a responsible entity in Australia, enabling to act as both trustee and manager.
Berkshire Global Advisors served as financial adviser and Hall and Wilcox served as legal adviser to Channel. MinterEllison served as legal adviser to Kudu.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].