The acquisition expands Fidante Partners’ presence in Europe, where it already holds interests in UK-based alternative asset managers, including global infrastructure investor Whitehelm Capital and the asset-backed security specialist WyeTree Asset Management.

Dexion Capital, which employs around 40 staff, has interests in three specialist fund managers, as well as a London-based investment distribution business. 

Fidante Partners, part of Australia-listed , was responsible for A$45.1 billion ($33.4 billion) of funds under management as of the end of March. It is expected to complete the Dexion acquisition this month.

“This represents a significant step up in our European presence and is an important part of our international distribution and product expansion,” said Challenger’s chief executive, funds management, Ian Saines.

“Dexion Capital’s funds management operation provides a scalable platform to realise our ambition of replicating Fidante Partners’ successful multi-boutique model in the European market, while opening up global distribution opportunities for our existing boutique managers.”

Challenger said it will make a fixed payment of £19.6 million to Dexion’s shareholders and the final acquisition price will depend on the firm's profitability over six years.