Christopher Joye's Coolabah Capital Investments is taking full ownership of a retail fund management business it developed as a joint venture with Yellow Brick Road.
Smarter Money Investments offers fixed income and cash strategies managed by Coolabah. It had more than $ 1 billion in funds under management at June end.
It was owned 50-50 by shareholders of Coolabah and Yellow Brick Road.
Yellow Brick Road yesterday announced that is selling its stake to Coolabah for a purchase price of $7.5 million, giving the latter 100% ownership of the business.
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There will be no other change at Coolabah or Smarter Money following the sale, YBR said in company filings yesterday.
Coolabah will absorb all the distribution and administrative staff of the joint venture before the July 12 completion. YBR's network will continue to offer existing and future cash and fixed interest products from Coolabah and SMI.
"We were very pleased to have been a 50% founding shareholder of the SMI business along with its other co-founders who, with YBR, have built from a startup in 2011 a significant $1 billion plus, market-leading funds management business in their area of expertise in fixed interest," YBR executive chair Mark Bouris said.
"However, given YBR's recent strategic pivot away from wealth management to focus on the mortgage market, it made sense that we exited from this business in a controlled and profitable manner."
CCI director and co-founder Darren Harvey said: "The SMI Joint venture has been a tremendous success and Coolabah and its shareholders are delighted to take full control of the business which made sense given our strong growth in the retail and institutional markets."
"The existing investment team comprising four portfolio managers, eight analysts and a range of operations, compliance and finance professionals will be expanded to include the four SI product specialists who have worked very closely with the CCI team over the last eight years."
CCI manages about $3 billion, including the SMI $1 billion.