Kumar Palghat is joining William H. Gross in managing the Janus Global Unconstrained Bond Fund as co-portfolio manager.
The move is part of a deal that has Janus Capital Group paying about $85 million in cash to acquire a majority stake in Kapstream Capital Pty. Ltd., Sydney, Janus spokeswoman Erin Freeman said in an e-mail. Mr. Palghat is a co-founder, managing director and chief investment officer of Kapstream.
The announcement ends months of speculation as to how Janus would support Mr. Gross' management of the firm's unconstrained fund, which Mr. Gross took over after his sudden departure from Pacific Investment Management Co. in September.
Janus CEO Richard Weil has said his firm was looking to build a small team for Mr. Gross. Mr. Gross has said he has no plans to retire, but financial analysts and investment consultants have said Janus needed to build a team beyond Mr. Gross to at least reassure investors a succession plan is in place.
Mr. Gross will remain the primary portfolio manager of the unconstrained fund. Mr. Palghat, in addition to his duties on that fund, will remain portfolio manager of the Kapstream Absolute Return Fund, said a Janus news release.
Mr. Palghat and Kapstream co-founder Nick Maroutsos — along with the other 13 team members — will operate out Kapstream's office in Sydney and Janus' Newport Beach, Calif., office, the news release said.
The $85 million transaction gave Janus a 51% controlling stake in Kapstream, the release said. Janus has the option to purchase the remaining 49% in the future.
Kapstream, founded in 2006, has about $6.6 billion in assets under management; Janus managed $189.7 billion, both as of March 31.
In a statement, Mr. Weil said the acquisition of Kapstream furthers Janus' commitment to expand its fixed-income operations. “This transaction will reinforce our efforts to build a global macro fixed-income team offering best-in-class global unconstrained bond strategies,” he said.
