Challenger to merge Fidante with Channel Capital
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The news: Challenger has unveiled plans to merge its multi-affiliate funds management business, Fidante, with Channel Capital. The transaction is expected to close in the first half of FY27, forming a new parent entity called Channel Group.
The transaction and separation costs for Challenger are projected to be in the range of $5 million to $8 million.
The context: Under the agreement, Fidante will become part of a newly formed entity led by Channel Group managing director Glen Holding, operating as a standalone brand. The combined platform is set to service more than $150 billion in assets.
Challenger will retain a 45% equity stake in Channel Group and receive up to $172 million in cash payments, while existing Channel Capital shareholders and Channel Group management will hold the remaining 55% stake.
The company stated that the merger will position Channel Group as one of Australia’s largest investment platforms, supported by over 240 professionals across 11 global offices.
Challenger expects to recognise an approximate $100 million pre-tax gain on the sale in FY27.
What they said: “We have been very deliberate in our decision to pursue a merger with a strategically and culturally aligned business that will deliver strong outcomes for shareholders, affiliates and our employees,” Challenger CEO Nick Hamilton said.
“The merger delivers scale and opportunities for Fidante, which will benefit our affiliates and clients,” he added.
The source: ASX
