RBC to buy Yarra Capital with $18 billion
Key points
- RBC has agreed to acquire Australian asset manager Yarra Capital Management subject to regulatory approval.
- RBC stated that the transaction will not have a significant impact on its capital ratios or future run rate earnings.
- The acquisition expands RBC Global Asset Management's investment capabilities into Australian equities and fixed income markets.
Royal Bank of Canada has agreed to acquire Yarra Capital Management, adding about $18 billion in assets under management to its platform.
The target business will join RBC Global Asset Management, which held CAD$800 billion in assets under management as of July 31.
“The investment and distribution capabilities of Yarra are complementary to our asset management business,” said RBC Global Asset Management CEO Damon Williams.
The transaction involves approximately 75 employees, with completion targeted between late 2026 and the first quarter of 2027.
Yarra was established in 2017 after a management buyout of Goldman Sachs Asset Management’s Australian operations backed by TA Associates.
Executive chair Dion Hershan led that initial buyout and confirmed that senior management and executive shareholders remain committed to the business.