Channel Buys Fidante to Grow Australia Fund Manager Services

Channel Capital will merge with Challenger Ltd.’s Fidante unit to create an Australian fund manager spanning a range of investment strategies with around A$150 billion ($105 billion) in assets.

The combined entity will be known as Channel Group, with existing Channel Capital shareholders owning 55% and Challenger having a 45% stake, according to a statement on Thursday. Challenger will receive up to A$172 million in cash, subject to certain conditions.

Fidante has about A$86 billion in funds under management and offers strategies across equities, fixed income and alternative assets. Total assets overseen by the new group will be about ...