(L to R): Glen Holding & Nick Hamilton
Channel Capital and Fidante have announced they have entered into a binding agreement to merge, forming a new parent entity: Channel Group.
Channel Capital is a privately-held Australian investment management services business that builds, supports and distributes boutique and global managers through its operating platform and responsible entity capability. Fidante, currently owned by Challenger, is an active multi-affiliate manager with approximately A$86 billion in funds under management across equities, fixed income and alternative assets.
The combined platform will service more than A$150 billion in assets, bringing together Channel’s operating platform with Fidante’s established multi-affiliate investment model.
This scale positions Channel Group as one of Australia’s largest investment platform and services businesses, supported by over 240 professionals across 11 global offices, with the capabilities to serve a diverse range of clients.
Under the transaction, Channel’s shareholders will hold a majority interest in Channel Group, with Challenger retaining a meaningful minority stake. This structure ensures both organisations remain co-invested in the platform, reflecting the joint conviction in the group’s long-term outlook and success.
Channel Group will centralise operational expertise across shared infrastructure, including responsible entity and governance services. Within the group, Channel Capital, Fidante and Continental Funds Group will continue to operate as distinct, client-facing businesses. This model preserves the unique identities, investment philosophies and affiliate relationships that underpin each business’ success, while enabling them to benefit from shared capabilities and operational scale.
Channel Group Chief Executive Officer Glen Holding said: “Bringing together the strength and expertise of Channel Capital and Fidante creates a highly diversified, resilient platform with the ability to invest through market cycles.
“It’s a truly distinctive proposition — one that gives boutique Australian managers the resources to grow, while offering global managers a proven, trusted gateway into the Australian market. That combination is highly differentiated in the market, and it’s what will drive the next decade of growth for Channel Group.”
Challenger Managing Director and Chief Executive Officer, Nick Hamilton, said: “Our announcement today takes Fidante into its next stage of growth as part of a larger and more diversified active funds management platform. This merger ensures we can remain long-term holders of Fidante, whilst benefitting from a more diversified multi-affiliate platform.
“We’re excited by the creation of Channel Group, the broader geographic reach and wider investor base it will provide to affiliates, increased career opportunities for our people, and the benefits for Challenger as a long-term holder and partner in a business we’re building together.”
Channel Group will operate across three core business lines: affiliate partnerships providing equity and revenue participation in boutique investment managers; distribution partnerships with major global firms; and institutional infrastructure services — including responsible entity, fund services and middle-office solutions — to major institutional clients.
The merged group services a broad range of Australian and global investment managers across listed and unlisted asset classes, including equities, fixed income, real assets and private markets, while connecting investors with high-quality investment opportunities.
Mr. Holding added that the merger delivers scale without compromising independence or quality: “This transaction establishes a platform with the scale and structure to support long-term growth. We have combined complementary capabilities while maintaining the brands and relationships that sit at the centre of client engagement.”
Completion of the merger remains subject to regulatory approval.
