Royal Bank of Canada (RBC) entered into an agreement to acquire Yarra Capital Management, an active asset manager that specializes in Australian fixed income, Australian equities and alternative investment solutions.
RBC Global Asset Management is focused on expanding its capabilities and diversifying its market share, including outside of North America. The acquisition is expected to further strengthen the bank’s position as a leading global asset manager.
“The investment and distribution capabilities of Yarra are complementary to our asset management business. Yarra’s reputation within Australian fixed income and equities is a testament to its strong track record in investment performance and culture of putting clients first,” Damon Williams, CEO of RBC Global Asset Management, said. “We know Australian institutional investors and intermediaries take a globally oriented approach to asset allocation. We believe the strength of our investment capabilities that go beyond domestic borders within fixed income, equities and alternatives are well-positioned to support this investor appetite.”
Dion Hershan, executive chairman of Yarra Capital Management, added, “After a long and deliberate search to find the right business partner for the future, we are thrilled about our agreement to join RBC. The strong cultural alignment between Yarra and RBC is very clear and we share the same fundamental beliefs of serving our clients with compelling products and services, delivering investment excellence and developing and retaining the best talent. Senior management, including management shareholders, at Yarra are excited about the future of the business and the opportunity to continue growing over the long term as a part of RBC GAM.”
Under the terms of the agreement, RBC will acquire full ownership of Yarra subject to the satisfaction of certain closing conditions, including regulatory approval. We anticipate completion of this transaction in Q1/27. The transaction is not expected to have a significant impact to RBC’s common equity Tier 1 ratio2 or future run rate earnings.
