Channel Capital and Fidante to merge

Challenger announced it has entered into a binding agreement to merge its multi-affiliate funds management business, Fidante, with Channel Capital.

- Eliza Bavin

Under the agreement Fidante will become part of the newly formed entity Channel Group and will be led by current Channel Capital managing director Glen Holding.

Fidante will continue to operate as a standalone brand but will benefit from broader scale in the combined entity with around $150 billion in assets, Challenger said.

Challenger will own 45% of Channel Group and receive up to $172 million in cash payments subject to certain conditions. Existing Channel Capital shareholders and Channel Group management will own 55% of Channel Group equity.

Challenger is set to recognise around $100 million in pre-tax gains on the sale in FY27.