Royal Bank of Canada has agreed to buy Yarra Capital Management, an Australian active asset manager, in a deal expected to close in the first quarter of 2027. Yarra managed A$18 billion in assets as at 30 September 2026, RBC said.
The bank did not disclose a purchase price. Full ownership will transfer to RBC once closing conditions are met, including regulatory approval. RBC does not expect the transaction to materially affect its common equity Tier 1 ratio or future run rate earnings.
Yarra was founded in 2017 and operates from Melbourne and Sydney. Damon Williams, chief executive of RBC Global Asset Management, said Yarra's investment and distribution capabilities complement RBC's asset management business, and that the firm has a strong track record in Australian fixed income and equities. He said RBC's capabilities across fixed income, equities and alternatives beyond domestic borders are well positioned to meet demand from Australian institutional investors and intermediaries, who take a globally oriented approach to allocating assets.
Dion Hershan, executive chairman of Yarra, said the firm conducted a long and deliberate search before choosing RBC as a business partner. He said there is strong cultural alignment between the two firms, citing shared beliefs around client service, investment excellence and talent development. Hershan said management shareholders at Yarra, along with senior management more broadly, are enthusiastic about continuing to grow the business over the long term within RBC Global Asset Management.
RBC said the proposed transaction would reinforce its standing as a leading global asset manager and reflects its commitment to expanding in Australia and the Asia-Pacific region. RBC Global Asset Management describes its strategic focus as expanding capabilities and diversifying market share outside North America. RBC is Canada's largest bank by market capitalisation and serves more than 19 million clients across Canada, the United States and 27 other countries.
Australian institutional investors and intermediaries who currently invest through Yarra would, once the transaction closes, become clients of an RBC-owned entity, gaining potential access to RBC Global Asset Management's broader global investment capabilities. The deal requires regulatory approval before it can complete, meaning there is no immediate change to Yarra's operations or client arrangements.
Official statements: RBC
Reporting: Yahoo Finance
Background: Yahoo Finance
Written by Pick & Scroll News from the reporting and documents linked above.
