Blackwattle Investment Partners, an asset management firm established two years ago, is launching its first equity income fund. The firm, backed by prominent Australian families, has recruited a team from First Sentier Investors to spearhead the new venture. Blackwattle has grown its funds under management to nearly $350 million and is targeting $500 million within the next 12 months. Blackwattle Investment Partners is an asset management firm that was founded just two years ago. The firm seeks to expand across multiple asset classes.
The team joining Blackwattle includes Rudi Minbatiwala, Jason Moodie, and Marlon Chan, formerly of First Sentier Investors. First Sentier, previously part of Colonial First State and later acquired by Japan’s MUFG, recently announced the closure of several local teams, including those managing equity income. Minbatiwala, who will serve as portfolio manager, emphasised a continued focus on a long-term investment philosophy. He stated the fund will invest in quality companies with long-term earnings growth potential, regardless of their short-term dividend yield.
Blackwattle’s expansion comes at a time when some firms, like First Sentier, are retreating from equity income funds due to scalability challenges. Equity income funds typically invest in stocks with higher dividends and lower growth, making them popular among retirees. Minbatiwala highlighted REA Group and ResMed as examples of companies often overlooked by traditional income investors but offering strong growth and dividend potential. The fund aims to generate income through a combination of dividends and strategic options trading.
Michael Skinner, co-founder and chief executive of Blackwattle, described the partnership as the result of a thorough selection process. He noted the firm’s intention to expand across multiple asset classes and its commitment to partnering with top-tier investment teams. According to Skinner, the due diligence process with Minbatiwala’s team spanned nine months, solidifying the belief that they are well-positioned to deliver strong results moving forward.
