The combined entity will create one of Australia’s largest independently owned Australian equities and fixed income fund managers, with about $A20 billion in funds under management.
Nikko Asset Management and Yarra Capital Management have entered into a partnership focused on long-term growth, under which Yarra will assume ownership of Nikko AM’s Australian subsidiary, and its associated entities, and Nikko AM will get a 20 percent stake and board representation.
The deal is subject to regulatory approvals and is expected to close in April 2021, according to a joint statement.
Search for New MD
Dion Hershan, currently Yarra managing director and Head of Australian Equities, will become executive chair and head of equities (Yarra). The company has started a search for a new managing director to lead the combined business. Until then, Garvin Louie, Yarra general counsel who currently leads the firm’s business operations, will serve as interim managing director.
Nikko AM's Australian equities business will return under the Tyndall brand and remain separate from Yarra's. It will be led by Brad Potter, currently Nikko AM head of Australian equities.
The fixed income businesses of both entities will be combined and jointly led by Roy Keenan, Yarra head of Australian fixed income and Darren Langer, Nikko AM head of Australian fixed income, as co-heads of Australian fixed income.
