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November 10, 2020

Channel Capital brings ownership back to management with backing from Kudu

By Verdict Staff

Australian investment manager Channel Capital is repurchasing a minority equity stake in the business from Highbury Partnership.

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Channel will carry out the management buyout through investment from Kudu Investment Management.

In 2017, Highbury invested about $15m in Channel and acquired a minority stake in the business.

New York-based Kudu will not only offer funding for the stake buyout but also additional capital for the firm.

The buyout will provide Channel’s employee shareholders with a greater share of the business.

In return for the financing, Kudu will secure a passive, minority holding in the business. The deal marks Kudu’s entry into the Australian market.

The deal, whose financial details were not revealed, is expected to close this month.

Channel offers incubation, operations, distribution, marketing and responsible entity services to investment managers in Australia and New Zealand.

It employs 27 people across Sydney, Brisbane and Melbourne.

Channel co-founder and managing director Glen Holding said: “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.”

Kudu currently has 14 affiliated firms including Channel. The firm offers permanent capital solutions to asset and wealth managers and is backed by White Mountains Insurance Group.

Commenting on the development, Kudu chairman and managing partner Charles Ruffel said: “As our first transaction in Australia, one of the world’s largest pension markets, we jumped at the chance to support Channel in achieving its full potential.

“Channel’s leadership and strong focus on investor outcomes permeate the organisation, and we look forward to a long and fruitful working relationship in Australia and globally.”

Earlier this year, Kudu invested in Sequoia Financial Group and Creation Investments Capital Management.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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