Yarra Capital Management has completed its acquisition of Nikko Asset Management’s (Nikko AM) Australian business, which will keep all investment team personnel in place, and Nikko AM will have a 20% stake and board representation in the enlarged group.
The acquisition would make it one of the country’s largest independently-owned funds management businesses with $20 billion in funds under management (FUM).
Nikko AM would gain access to Yarra’s investment products and Yarra would assume responsibility for the distribution of Nikko AM’s global suite of products in the Australian markets.
The top-level brand would be Yarra Capital Management, with no changes to Yarra’s existing products or entities.
Nikko AM’s Australian fixed income business would be integrated into Yarra’s expanded fixed income team and rebranded under Yarra’s banner.
Nikko AM’s Australian equities business would see a return of the Tyndall Asset Management (Tyndall AM) brand, a process which was expected to be completed early in the second half of 2021.
Tyndall AM would remain a separate franchise to Yarra’s style-neutral Australian equities business, with no crossover in investment management activity and no change to its value investment philosophy or process.
Garvin Louie, Yarra interim managing director, said: “The combination, which has received very strong support from internal and external stakeholder groups, enables us to strengthen our relationship with clients and provides the scale to support further investment in talent, research, leading technology and operational excellence to continue to serve our clients.”