McKinnon launches multi-affiliate manager for Grant Samuel, while..

Andrew McKinnon has launched Australia’s latest multi-affiliate funds manager by starting a funds management arm for the boutique investment bank Grant Samuel.

McKinnon, who last year left Credit Suisse Asset Management after 10 years as chief executive, and who served a similar period as a director of the former County Investment Management, is hopeful of launching the first of the firm’s managers in Australia within the next couple of months. This will be an international equities boutique with whom Grant Samuel is negotiating Australian representation. Grant Samuel Funds Management is a separate company from the investment bank, with a separate board, which will invest in a range of specialist Australian managers from Australian equity managers to property, infrastructure and, “when the time is right”, private equity managers. Grant Samuel, which is best known for its corporate advisory and expert valuations roles, has previously had a private equity business but closed this after the team walked. The firm has a property operation and this would be a logical first area to move into in domestic funds management. McKinnon is currently searching for marketing, distribution and operational staff. “We will be providing marketing and distribution support for managers as well as taking an equity stake in some of them,” he said. “Grant Samuel has a very good brand … and has made a long-term commitment to funds management.” With its alternatives managers, Grant Samuel Funds Management will be looking to co-invest with management. The multi-affiliate model is proving increasingly popular around the world because it enables institutions to cover a broad spectrum of the industry without single-manager risk. Australian-owned examples include Treasury Group, Perennial, St George’s Ascalon, Ian Macoun’s Pinnacle Investment Management, and, to a lesser extent, the incubator parts of Challenger and BT.