Challenger (CGF) investor relations material

Deal rationale and strategic fit

• Merger creates a leading integrated investment platform with complementary capabilities in equities, fixed income, and alternatives, and a global footprint.

• Expands distribution reach across retail, institutional, wholesale, and high net worth investor segments.

• Diversifies by asset class, geography, channel reach, products, and revenue streams.

• Strategic and cultural alignment aims to deliver strong outcomes for shareholders, affiliates, and employees.

• Combination supports boutique Australian managers and provides global managers access to the Australian market.

Financial terms and conditions

• Channel Group will acquire both businesses; Channel Capital shareholders and staff will own 55%, Challenger will own 45%.

• Challenger to receive up to $172 million in cash payments, subject to conditions.

• Estimated $100 million pre-tax gain on sale recognized in FY27.

• Separation and transaction costs estimated at $5–8 million in FY27.

Synergies and expected cost savings

• Enhanced value proposition for affiliates and partners through combined services and scale.

• Access to diversified and resilient income profile, with 85%+ recurring revenue and 35%+ EBIT margins (ex. cost synergies).

• Combined entity will have approximately $150 billion in assets under management.

• Realized operational efficiencies contribute to lower costs.