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.
