CHC – Charter Hall Group

Paradice Investment Management is preparing to take on the likes of Magellan Financial Group and GQG Partners in global equities after securing Australian real estate investment bigwig Charter Hall as a 50 per cent shareholder.

David Paradice said Charter Hall’s backing would give it the firepower and scale to launch new products that investors want. Mr Paradice owned 36 per cent of Paradice IM before the deal and his team owned 64 per cent.

Charter Hall will pay $207 million for the 50 per cent stake in Paradice IM, which manages $18.2 billion on behalf of mostly institutional clients. The payment is made of 70 per cent in scrip and 30 per cent cash. The scrip portion is escrowed in two equal tranches until 30 June 2023 and 2024, while the cash portion will help pay tax liabilities.

Paradice was looking to expand, while Charter Hall was looking to diversify.