Origin Energy would need to raise $4 billion fresh equity should it wish to split into separate integrated gas and electricity markets companies. 

That's the view from Credit Suisse analysts on Thursday morning, who reckon Origin's gas business could sustain a $4 billion debt load based on its peers and how they are treated by ratings agencies, while the electricity side of the company could take $6 billion. 

The problem for Origin is that its existing total debt is worth about $14 billion. 

The question, then, would be how to plug the gap. 

Credit Suisse's team reckons Origin could look for a strategic investor to take a stake at a premium to the prevailing share share, similar to Santos taking on China's Hony Capital late last year. 

"We would see both de-merged entities as potentially attractive to strategic investors standalone," the analysts told clients on Thursday morning. 

"The advantage of a placement to one or more partners is that it reduces the dilution to existing equity holders." 

Credit Suisse's comments come as Origin boss Grant King and his team consider the best structure for the business. 

Some analysts and investors suggest a demerger between Origin's core energy markets business and its growing oil and gas business is a natural next step for Origin once the APLNG project is fully on stream and reaches technical completion in about 12 months.

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The rationalisation in the boutique funds management industry has accelerated this year, claiming its latest victim in National Australia Bank-backed Northward Capital.  

Street Talk understands a decision to close Northward was made after funds under management tumbled to between $130 million to $160 million from a peak of almost $3 billion in 2012. 

A letter to customers said the business failed to "gain sufficient traction" in the market. Northward has already started returning cash to investors in a process that will be complete by the end of the week. 

The firm included the Northward Equity Income Fund, which held the bulk of the funds under management, and the Northward Australian Equity fund. Key employees are staying on until June. 

Northward was the first investment by NAB's asset management arm, nabInvest, and lined up against other boutiques including Pengana Capital and Antares.  

It joins a list of other boutiques that have closed. Incubator models see firms like NAB, Westpac Banking Corp and Challenger taking stakes in a stable of boutiques. 

But the structure is not without problems. 

In February, Challenger's incubator arm Fidante Partners, announced the closure of Metisq Capital and a liquidation of its assets. 

Alleron Investment Management, which at its heights had more than $2 billion under management, also appears to have dropped out of the stable at Westpac's Ascalon. 

Meanwhile, as flagged by Street Talk,  NAB's asset management unit is understood to have lured AMP Capital's senior economist Bob Cunneen.
 

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Bennelong Funds Management is preparing to open offices in London and Asia as the firm also scours the markets for boutique partners and steps up a global expansion, sources told Street Talk. 

Bennelong manages more than $6 billion and wants to rapidly grow that figure over the next two years. An initial public offering is also among options on the table in the medium term. 

The firm is owned by BRW rich lister Jeff Chapman and pours profits into philanthropic endeavours. Bennelong is chaired by former Standard Chartered and Westpac Banking Corp executive Mike Pratt. 

Bennelong now counts seven boutiques among its stable. They include 4 Dimensions Infrastructure,  Avoca Investment Management, Bennelong Australian Equity Partners, Bennelong Long Short Equity Management (market neutral hedge fund),  Kardinia Capital, Quay Global Investors (global real estate) and Touchstone Asset Management. 

The expansion route Bennelong is seeking makes sense for the company as it looks to build its investments, but not all fund managers have found green pastures in Europe. 

Perpetual axed its $900 million Dublin offshore funds management operation in 2011. The funds management behemoth transferred the function to Boston-based Wellington Management Company. 

BT Investment Management's acquisition of J O Hambro has proven to be a godsend for the firm providing much needed global diversification. 

Credit Suisse analysts noted that BTIM reported net inflows of $1 billion in the March quarter primarily driven by inflows from J O Hambro and offset by outflows from BTIM Australia. 

Street Talk last week revealed that BTIM was considering a corporate restructure that would see chief executive Emilio Gonzalez elevated to a global role and a local managing director position created. 

The shake-up will also lead to a new head of retail distribution role being created. 

Elsewhere, UBS Wealth Management spin-off Crestone must top the charts for the most launch dates. The start of the new venture is now understood to be in June following a string of administrative delays and key executives underestimating the work involved in acquiring the UBS business. 

That includes tee-ing up new commercial relationships and ensuring systems are ready to go. This column last year revealed that Crestone had aligned with partners including Commonwealth Bank of Australia, UBS and platform provider Avaloq.

 

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It's an interesting time for UK private equity firm Pamplona Capital Management to have one of its top operatives in the country.

Street Talk understands a partner from the €3 billion London-based firm has been seeking meetings with just about everyone involved in Arrium's collapse.

Lenders said that included Arrium's banks, advisers, administrators, lawyers, political types and the like, and clearly indicated Pamplona had not given up hope altogether of striking a deal involving Arrium.

Of course Pamplona is not the only fund – private equity or otherwise – digging around Arrium.

Blackstone's GSO Capital Partners would not have walked away completely following its unsuccessful tilt, and there is also Cerberus Capital and Argand Partners, along with the usual list of distressed debt funds seeking a way in. 

Remember Pamplona was one of the private equity tyrekickers circling Arrium's Moly Cop late last year. While it is not known whether the firm's interest has grown to include Arrium in its entirety, there is quite obviously a deal to be done and a need to do it.  

And, from what Street Talk understands, Pamplona has a pretty flexible mandate and is not scared to take big bites where is sees an opportunity. A Pamplona spokeswoman declined to comment.

The problem for Pamplona – and other potential buyers scratching around the scenes – is the sheer number of moving parts in Arrium's collapse, and the number of people involved.

The other issue is that the people involved keep changing, as seen by the lenders' move to replace Grant Thornton's Paul Billingham and colleagues as administrator.

Interestingly, sources told Street Talk that the key player in that move was Westpac Banking Corp and its representatives, who were pushing hard for the switch to McGrathNicol's Peter Anderson.

The real questions, though, should be directed to the 20-something banks and particularly the Big Four Australians.

How did the Big Four have $1 billion in loans between them and why was that debt not secured?

In hindsight, it seems a crazy move give the cyclical nature of Arrium's business and the sheer volume of debt involved. And, similarly, were the banks given a chance to secure their loans somewhere along the way?

While management must take some of the blame, there is also a lot of soul searching to be done inside the banks and their credit committees. Bank shareholders are also known to be asking questions. 

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National Australia Bank's asset management arm is understood to have lured AMP Capital's senior economist Bob Cunneen.

The appointment will be announced as early as Thursday, according to sources. 

Cunneen had a 23 year stint with AMP Capital as a senior economist with experience spanning global economic analysis, global bonds, currency and equity markets for AMP's diversified funds.

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