FINANCE: Orchard Street Investment Management has sold a majority stake to NAB Asset Management, the global asset management business of National Australia Bank.
The UK fund manager’s seven partners have completed the sale of “more than 70% but less than 75%” to the bank for an undisclosed price.
The deal sees London-headquartered Orchard Street, which was founded by chairman Chris Bartram 10 years ago and now has circa £4bn of assets under management, become NAB’s exclusive UK partner.
Following the transaction, the day-to-day management of Orchard Street remains unchanged, with the existing partnership comprising Bartram, Philip Gadsden, David Lee, Gary Felce, John Humberstone, Phillip Rodger and Barney Rowe continuing to manage client relationships.
Bartram will remain as chairman of the combined entity and Gadsden will continue in his role as managing partner and will head the senior management committee.
Bartram said NAB is the “complete antithesis of a private equity or venture capitalist partner… and provides a good all-round fit with a like-minded institutional partner.”
He said NAB “has signed up for our business plan which is to continue measures and disciplined growth” at the specialist segregated fund manager, and there are no plans for NAB to co-invest or launch new products with its new UK partner.
Gadsden added: “One of the important things with a discussions like this is how it will work day-to-day,” adding that NAB was clear “it is not going to take over… the business will continue to be run as it is currently run”.
He added: “The seven partners still have more than 25%, which is a very firm alignment with clients,” who he said were all “very supportive and happy” with the transaction.
The deal sees Orchard Street join a stable of 12 other global asset managers at NAB which operate in all major asset classes.
It is NAB’s third real estate tie up alongside a Singapore-listed REIT and a Montreal-based real estate securities manager.
Bartram said: “NAB Asset Management brings significant investment expertise, a strong balance sheet and is a strong cultural fit for our business. We look forward to working together as we continue with our steady path to growth by winning new mandates and growing AUM on behalf of our existing long-term clients.”
Garry Mulcahy, executive general manager of NAB Asset Management, said: “We have been looking for an opportunity to provide our clients with access to this asset class and are delighted to announce this partnership with Orchard Street.”
“The partnership is consistent with our strategy of identifying and partnering with the best investment talent from around the world.”
