Global investment manager Barings has agreed to buy Australian specialist asset manager Gryphon Capital Partners for an undisclosed sum.
Gryphon Capital is the investment manager of the Australian-listed Gryphon Capital Income Trust, which primarily invests in residential mortgage-backed securities.
The manager handles individual segregated accounts on behalf of institutional investors. Established in 2014, Gryphon Capital has assets under management (AUM) totalling A$2.6bn (€1.6bn).
Barings said the acquisition would lift the Barings Global Structured Finance’s AUM to US$8.6bn.
Barings said the transaction would enable Gryphon to scale its investment strategy through Barings’ global platform. Simultaneously, the transaction would expand Barings’ global structured finance solutions in the Asia Pacific region and accelerate its entry into the wealth market in Australia.
William Awad, Barings’ head of global structured finance, said: “We see a significant opportunity to expand our platform in Australia.”
Awad described Australia as a “strategic market with strong macroeconomic fundamentals”. The market offered growing opportunities across the residential, consumer, and commercial asset finance markets for structured capital solutions, he said.
Steven Fleming, Gryphon’s co-founder and portfolio manager, said: “Our clients will benefit from Barings global investment capabilities together with the operational and business support from one of the world’s leading asset managers.”
Mike Freno, Barings’ chairman and CEO, said the Gryphon transaction would also create a springboard for the firm to grow its structured finance capabilities in APAC.
Gryphon is the second major acquisition by Barings in Australia. Last August, it took over Sydney-based Altis Property Partners.
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