Challenger, an Australian investment management firm, and SimCorp, a provider of SaaS investment management solutions, have signed a non-binding memorandum of understanding in relation to a strategic partnership to launch a new stand-alone company. The business will provide investment administration services to Challenger, Fidante Partners and third-party clients. As part of the agreement, Challenger will move its current on-site SimCorp platform to SimCorp’s cloud-based solution.
The new company will be Australia’s first cloud-based front-to-back investment operations platform, providing fully integrated investment administration services for asset managers and owners across Australia and APAC. The company will be powered by SimCorp’s full technology and service stack, including data management, client communications, and investment accounting services.
In addition to offering investment administration, the company will also offer a broad range of technology solutions, including portfolio and order management tools, client reporting, and a cloud data warehouse. Existing Challenger employees who operate the platform will transition to support the new business. Challenger’s current group chief operating officer, David Mackaway, will become CEO of the business.