Channel Capital and Challenger’s Fidante unit merged to form Channel Group, a new Australian fund manager with A$150 billion in assets. Existing Channel Capital shareholders will own 55% while Challenger holds 45%, receiving up to A$172 million in cash.

Fidante contributes about A$86 billion in funds under management across equities, fixed income and alternatives. The combined firm will oversee roughly A$150 billion once affiliates, distribution agreements and serviced assets are counted, giving the new entity a broad, diversified platform.

Glen Holding, Channel Capital’s managing director, will steer Channel Group. Fidante will keep its standalone brand, allowing boutique Australian managers to access global capital while maintaining local expertise.

Challenger projects a pre‑tax gain of around A$100 million on the sale for FY2027, underscoring the financial upside for its shareholders and signaling confidence in the expanded multi‑affiliate model.