Janus Capital has acquired 51% stake in Sydney-based fixed income fund manager Kapstream Capital from investment manager Challenger.

New York Stock Exchange-listed Janus Capital bought the stake for an upfront cash consideration of $85m. It also has the option to buy the remaining 49% interest in the future.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Kapstream, which was established by PIMCO Asia-Pacific veterans Kumar Palghat and Nick Maroutsos with Challenger’s funding in Australia in 2007, managed $6.6bn in assets as of 31 March 2015.

Bill Gross, who joined Janus in September 2014, will remain the primary portfolio manager of the Janus Global Unconstrained Bond strategy, with Palghat supporting him as co-portfolio manager, Janus said in a statement.

Palghat will remain portfolio manager of the Kapstream Absolute Return Income Fund. The strategies for both will not change.

The combined Janus Global Macro Fixed Income team, which will consist of 15 professionals following the completion of the transaction, will operate jointly from Kapstream’s existing base in Sydney, Australia, and Janus’ Newport Beach, California, office.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

With this deal, the total Janus Global Macro Fixed Income assets under management would be $8.7bn as of 31 March 2015.

Janus Capital CEO Dick Weil said: "This transaction underscores three key commitments at Janus. First, we want to be the place where great investors come to invest. Kapstream’s Kumar Palghat, Steve Goldman and Nick Maroutsos are simply great people and great investors.

"Second, we passionately believe that given volatility in global rates, investors need excellent fixed income choices that offer less exposure to interest rate risk. Third, the acquisition of Kapstream furthers our commitment to expand our fixed income capabilities as part of the firm’s intelligent diversification strategy."