TA backs MBO of Goldman's Australia equities, fixed income unit

The company's core offering is its Australian equities product set, consisting primarily of long-only concentrated strategies; in fixed income it covers multi-asset and hybrid strategies. Assets under management exceed A$8 billion ($5.9 billion). While the client base is predominantly institutional and retail investors in Australia, there is some overseas distribution of local products, including in Japan.

The business will be re-branded under its new ownership. However, Dion Hershan, head of Australia equities for GSAM since 2007, will remain involved as managing director of the new standalone entity. He will lead the Australian equities team alongside Katie Hudson, while Roy Keenan will also stay on as fixed income portfolio manager.

"Dion, Katie, Roy and the team have established themselves as a strong and trusted asset manager and have grown the company significantly over the last nine years via a high-quality product suite and an extensive distribution network. As a long-term investor in fund management companies, TA looks forward to supporting their proven investment philosophy, process and strategy," Ed Sippel, managing director and co-head of Asia at TA, said in a statement.

According to Willis Towers Watson, Australia is the world's fifth-largest pension market with total assets of approximately A$2 trillion in 2015. The 10-year growth rate is 9.1% - among the fastest globally - in part due to the government policy of compulsory superannuation contributions. At the same time, rising regulatory and compliance costs have created barriers to entry, underlining the benefits of scale.

TA invests globally in growth companies, having backed more than 460 businesses since inception and raised $24 billion in capital. It has made 18 investments in the asset management industry. The firm's activity in Australia includes an investment in software solutions provider Nintex Group and a public listing for satellite communications business SpeedCast, which was acquired in 2012.

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• Topics
• Australasia
• Buyouts
• Financials
• Australia
• TA Associates
• Financial Services
• Goldman Sachs