TA Associates has agreed to back a management buyout of Goldman Sachs Asset Management's Australian money management arm, said TA spokesman Philip Nunes.
The transaction is expected to close by the end of the year. Financial terms of the agreement are not being disclosed. The company is expected to be renamed.
Dion Hershan has led the unit as GSAM's head of Australia equities since 2007, including the subsequent expansion of the investment team. The Australian unit has more than A$8 billion ($6 billion) in assets under management.
TA Associates is partnering with the company's senior management team consisting of Mr. Hershan, who will be managing director of the new stand-alone entity and will continue to lead the Australian equities investment team, focusing on large-cap equities; Katie Hudson, who is senior investment manager at GSAM and will co-lead the Australian equities team, focusing on the small and midcap universe; and Roy Keenan, who is head of Australian credit and global fixed-income management at GSAM and will be fixed-income portfolio manager.
“With TA's support, we will build upon our strong foundation, continuing to serve our clients, pursuing strong investment returns and further growing our business,” Mr. Hershan said in a news release announcing the deal.
The Australia unit's core offering is its fundamental Australian equities set, consisting primarily of long-only concentrated strategies. The investment unit's fixed-income capabilities include multiasset and hybrid strategies. The unit serves the Australian institutional and retail markets and also distributes Australian investment strategies overseas, including in Japan.
A GSAM spokesman confirmed the buyout.