Yarra Capital Management has struck a deal with Nikko Asset Management to become a $20 billion investment fund manager.
Yarra will acquire Nikko AM’s Australian business under the deal. In return Nikko will be provided with a 20% stake and board representation in the enlarged business.
The combination will create one of Australia’s largest independently owned equities and fixed income fund managers, with approximately $20 billion of assets under management.
Nikko AM’s Australian equities business will be rebranded as Tyndall in a move that returns the business to its original foundations.
Tyndall, which was established in the early 1990s, is a well-recognised name in the Australian equities landscape.
Yarra representative Dion Hershan said the transaction would enable them to provide additional scale to support greater investment in ‘talent, technology and operational excellence’.
“Yarra was attracted to the quality of the people within Nikko AM’s Australian business and we are delighted to welcome them into the Yarra team,” Hershan said.
“This partnership will help us expand the global reach of our investment strategies, in particular in Japan where we have achieved significant growth in recent years.”
Nikko AM president Hideo Abe said the partnership took the company’s commitment in Australia to the next stage.
“We are confident that our investment in Yarra will be the catalyst to enhance the capabilities that Australian investors are looking for, while sales, distribution and back and middle office functions will complement each other and thus continue to provide quality service to our clients,” Abe said.
“We are also excited to be able to expand our Australian equity and fixed income product offering to Japanese and global investors in this new capacity.”
The transaction remains subject to regulatory approvals and is expected to close in April 2021.