Channel Capital Undertakes Management Buyout Supported by Kudu Investment Management
Channel Capital, an Australian investment company managing over A$16 billion in assets, is pursuing a management buyout from minority partner Highbury Partnership. Kudu Investment Management is providing the necessary financing for this buyout, expected to be completed in November. This deal aims to enhance Channel's growth strategy and allow employee shareholders to gain increased control. Kudu will hold a minority share post-transaction. Established in 2013, Channel has 27 employees and partners with eight investment management firms.
- Channel Capital will gain increased control for employee shareholders.
- Partnership with Kudu Investment Management enhances growth potential.
- Channel operates in Australia, a large pension market.
- None.
NEW YORK and SYDNEY, Nov. 9, 2020 /PRNewswire/ -- Channel Capital Pty Ltd. (Channel), a leading Australian multi-affiliate investment management company servicing more than A
New York-based Kudu Investment Management, LLC (Kudu), an independent provider of permanent capital solutions to asset and wealth managers, is providing financing for the buyout and additional capital for the firm. Upon completion of the transaction, expected in November, Channel's employee shareholders will control a greater share of the diversified investment management group. Kudu will own a passive, minority share in the business. Financial terms were not disclosed.
Channel provides incubation, operations, distribution, marketing and responsible entity services to a select group of investment management companies and their clients across the institutional, family office, high net worth and advisor-led investor space in Australia and New Zealand. Channel's subsidiary, Channel Investment Management Limited (CIML), is licensed as a responsible entity in Australia, enabling it to act as both trustee and manager.
"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 capitalize on what we've built," said Glen Holding, Channel's co-founder and managing director. "Partnering with Kudu will greatly enhance our ability to pursue larger growth opportunities both within and outside of Australia."
"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," said Charles Ruffel, chairman and managing partner of Kudu. "Channel's leadership and strong focus on investor outcomes permeate the organization, and we look forward to a long and fruitful working relationship in Australia and globally."
Established in 2013, Channel has 27 employees across Sydney, Brisbane and Melbourne. Channel currently partners with eight investment management firms. Channel subsidiary CIML provides responsible entity services to a limited set of funds managed or advised by its partner firms as well as a select group of institutions.
With Channel, Kudu will have 14 affiliated firms that collectively manage or advise approximately US
Berkshire Global Advisors served as financial advisor and Hall and Wilcox served as legal advisor to Channel. Minter Ellison served as legal advisor to Kudu.
About Channel Capital
Channel provides incubation, distribution, operational and responsible entity services to a select group of investment management firms and their clients across the institutional, family office, high net worth and advisor-led investor space. Channel's subsidiary entity, CIML, provides responsible entity services to a limited set of funds. Channel currently services more than A
About Kudu Investment Management
Kudu provides long-term capital solutions—including generational ownership transfers, management buyouts, acquisition and growth finance, as well as liquidity for legacy partners—to asset and wealth managers. Kudu was founded in 2015 and is backed by capital partner White Mountains Insurance Group, Ltd. (NYSE: WTM). For more information, please visit Kudu's website.
View original content:http://www.prnewswire.com/news-releases/channel-capital-undertakes-management-buyout-supported-by-kudu-investment-management-301168053.html
SOURCE Kudu Investment Management, LLC
FAQ
What is the recent news regarding WTM and Channel Capital?
When is Channel Capital's management buyout expected to be completed?
What role does Kudu play in the Channel Capital buyout?
How much capital does Channel Capital manage?
What are the implications of this buyout for WTM investors?
