Key Takeaways
- • Royal Bank of Canada (RBC) has agreed to acquire Yarra Capital, the Australian fund manager with approximately $18 billion in funds under management, according to the Australian Financial Review (AFR).
- • The sale price was undisclosed; the deal was confirmed on a Tuesday, per the source report.
- • Yarra Capital's executive chairman Dion Hershan, who co-founded the firm almost a decade ago, framed the transaction as evidence that scale will determine winners in asset management.
- • Yarra was spun out of Goldman Sachs Asset Management in 2017 through a private equity-backed management buyout.
Summary
Royal Bank of Canada has agreed to buy Yarra Capital, an Australian fund manager with roughly $18 billion in funds under management, according to the Australian Financial Review. Yarra's executive chairman, Dion Hershan, confirmed the sale and said scale will triumph in the asset management industry. He co-founded the firm almost a decade ago.
The transaction was announced on a Tuesday and the purchase price was not disclosed. The source article characterizes the deal as part of a broader consolidation trend in which larger managers are gaining an advantage in the competitive asset management market.
Yarra was spun out of Goldman Sachs Asset Management in 2017 in a private equity-backed management buyout. The acquisition marks a transfer of ownership from its private equity backers and founders to a Canadian banking group, which expands RBC's presence in Australian asset management.
The primary source is limited in detail beyond these points, and further terms such as deal structure, regulatory approvals and post-acquisition plans for Yarra's investment teams were not disclosed in the available reporting.
The transaction was announced on a Tuesday and the purchase price was not disclosed. The source article characterizes the deal as part of a broader consolidation trend in which larger managers are gaining an advantage in the competitive asset management market.
Yarra was spun out of Goldman Sachs Asset Management in 2017 in a private equity-backed management buyout. The acquisition marks a transfer of ownership from its private equity backers and founders to a Canadian banking group, which expands RBC's presence in Australian asset management.
The primary source is limited in detail beyond these points, and further terms such as deal structure, regulatory approvals and post-acquisition plans for Yarra's investment teams were not disclosed in the available reporting.
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