The executive team of boutique asset management firm Wingate Asset Management has taken the majority shareholding in the business, acquiring the majority of the equity stake from Wingate Group.
The executive team now owns 70 percent of the business, while Wingate Group retains 30 percent.
As part of the ownership restructure, Wingate Asset Management will be renamed Talaria.
Talaria is a specialist international equity manager based in Melbourne, established in 2005. Its investment process is designed to offer structurally lower portfolio risk, higher income generation and overall lower volatility of returns. The performance of its Global Equity Fund over the last year* was 17.3 percent, of which 9.25 percent was income (distributed quarterly).
Jamie Mead, chief executive officer of Talaria, says the management buyout is the final step in the business’s strategic evolution, from being part of the Wingate Group, through a joint venture with Australian Unity, to becoming an independent, management owned asset manager.
“This restructure of ownership positions the business to fully capitalise on future opportunities for growth and performance, by bringing about the complete alignment of interests of the key executives at Talaria, with its investors.
“It is an ownership model that is now best practice around the world for boutique fund managers, putting the equity into the hands of the management team and investing in the intellectual capital of the business.
“We will also maintain our strong relationship with Wingate Group, who helped establish the business thirteen years ago.”
Following the buyout, Talaria has appointed Martin Hudson as chairperson. Mr Hudson has over a decade’s experience as chairman and non-executive director for a range of ASX listed companies, and was a partner at Freehills for 25 years, including managing partner of the Melbourne practice.
“We are particularly pleased to have attracted someone of Martin’s calibre to act as chairperson. He brings a wealth of global experience to the board and is the ideal person to join us on the next phase in our growth,” Mr Mead said.
Chad Padowitz, chief investment officer, added that the outlook for Talaria’s investment strategy and philosophy has never been stronger.
“We have a unique strategy that is particularly well suited to the needs of an increasingly sophisticated investor market that recognises the valuable role that international equities plays in their portfolio.
“There is an enormous, and growing, appetite, particularly in the retiree market, for lower risk real returns, which is the basis of Talaria’s philosophy.
“The business has experienced strong inflows in recent years and, coupled with its strong performance, is ideally positioned to offer investors in international equities differentiated risk adjusted performance.
“The fund has gone from strength to strength over the past few years, and was recently awarded the Lonsec Fund Manager of the Year Award (Retirement and Income Focused),” he said.
* 12 months to 31 August 2018