Royal Bank of Canada announces agreement to acquire Yarra Capital Management

Acquisition will serve as a springboard for RBC Global Asset Management's growth ambitions and commitment to the Australian investment management market

TORONTO, Nov. 9, 2026 /CNW/ -- Royal Bank of Canada (RBC) (TSX: RY) (NYSE: RY) today announced it has entered into an agreement to acquire Yarra Capital Management Limited (Yarra), an award-winning¹ active asset manager that specializes in Australian fixed income, Australian equities and alternative investment solutions.

Yarra, founded in 2017, with offices in Melbourne and Sydney, has approximately A$18 billion in assets under management as at September 30, 2026, and approximately 75 employees.

RBC Global Asset Management is focused on expanding its capabilities and diversifying its market share, including outside of North America. This announcement demonstrates RBC's commitment to growing in Australia and the Asia-Pacific region, and the proposed transaction, once closed, is expected to further strengthen the bank's position as a leading global asset manager.

"The investment and distribution capabilities of Yarra are complementary to our asset management business. Yarra's reputation within Australian fixed income and equities is a testament to its strong track record in investment performance and culture of putting clients first," said Damon Williams, CEO, RBC Global Asset Management. "We know Australian institutional investors and intermediaries take a globally oriented approach to asset allocation. We believe the strength of our investment capabilities that go beyond domestic borders within fixed income, equities and alternatives are well-positioned to support this investor appetite."

"After a long and deliberate search to find the right business partner for the future, we are thrilled about our agreement to join RBC," said Dion Hershan, Executive Chairman of Yarra Capital Management. "The strong cultural alignment between Yarra and RBC is very clear and we share the same fundamental beliefs of serving our clients with compelling products and services, delivering investment excellence and developing and retaining the best talent. Senior management, including management shareholders, at Yarra are excited about the future of the business and the opportunity to continue growing over the long term as a part of RBC GAM."

Under the terms of the agreement, RBC will acquire full ownership of Yarra subject to the satisfaction of certain closing conditions, including regulatory approval. We anticipate completion of this transaction in the first quarter of 2027. The transaction is not expected to have a significant impact to RBC's common equity Tier 1 ("CET1") ratio² or future run rate earnings.

Caution regarding forward-looking statements
This press release contains forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements in this press release may include, but are not limited to, the timing of the closing of the acquisition of Yarra (the Transaction), the expected impact of the Transaction on RBC's position as a global asset manager, the financial impact of the Transaction and include statements made by our management. The forward-looking information contained in this press release is presented for the purpose of assisting the holders of our securities and financial analysts in understanding the Transaction and may not be appropriate for other purposes. Forward looking statements are typically identified by words such as "believe", "expect", "foresee", "forecast", "anticipate", "intend", "estimate", "goal", "commit", "target", "objective", "plan" and "project" and similar expressions of future or conditional verbs such as "will", "may", "might", "should", "could" or "would".

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct, and that our forward-looking statements will not be achieved.

We caution readers not to place undue reliance on these statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors – many of which are beyond our control and the effects of which can be difficult to predict – include, but are not limited to: the possibility that the proposed Transaction does not close when expected or at all because of the occurrence of any event, change or other circumstances that could give rise to the right of any of the parties to terminate the proposed Transaction, including because required regulatory or other approvals and/or other conditions to closing are not received or satisfied on a timely basis or at all or are received subject to adverse conditions or requirements; the risk that any announcements relating to the proposed Transaction could have adverse effects on the market price of our shares; the possibility that the business of Yarra may not perform as expected or in a manner consistent with historical performance; reputational risks and the reaction of Yarra customers and employees to the Transaction; the possibility that the Transaction may be more expensive to complete than anticipated; and those other factors discussed in the risks sections of RBC's 2025 Annual Report and the Risk management section of RBC's Q3 2026 Report to Shareholders, all of which outline certain key factors and risks that may affect our ability to anticipate and effectively manage risks arising from all of the foregoing factors.

We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect the Transaction. When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events, as well as the inherent uncertainty of forward-looking statements. Material economic assumptions underlying the forward-looking statements contained in this press release are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings in RBC's 2025 Annual Report, as updated by the Economic, market and regulatory review and outlook section of RBC's Q3 2026 Report to Shareholders.

Assumptions about RBC's expected financial performance (including balance sheet, income statement and regulatory capital figures) were considered in estimating the financial impact of the Transaction on RBC's CET1 ratio and future run rate earnings.

Any third-party information contained in this press release is believed to be reasonable and reliable, but no representation or warranty is made by RBC as to accuracy of such information.

Except as required by law, RBC does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 105,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.‎

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.

About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC). RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies. RBC Funds, BlueBay Funds, PH&N Funds and RBC ETFs are offered by RBC Global Asset Management Inc. (RBC GAM Inc.) and distributed through authorized dealers in Canada. The RBC GAM group of companies, which includes RBC GAM Inc. (including PH&N Institutional), manage approximately $834 billion in assets and have approximately 1,600 employees located across Canada, the United States, Europe and Asia.

About Yarra Capital Management
Yarra Capital Management (Yarra) is a leading independent, active Australian fund manager, with approximately A$18 billion of assets under management. Founded in 2017, the Firm's offering includes its fundamental Australian equities product set, consisting of long-only, concentrated strategies which span the full breadth of the domestic market, and fixed income capabilities which provide clients with access to core fixed income, credit and multi-asset solutions. Yarra also provides access to a range of international equity products through its partnerships with other managers. Yarra serves the Australian institutional and retail markets, and its Australian investment products are accessed from various international markets, including Japan and New Zealand. For more information on Yarra Capital Management, please visit: https://www.yarracm.com/.

Media Relations Contacts
Lydia Cambata, Brand & Communications Director, London, UK +44(0) 7701 233 691
Miriam Sherkey, Communications Senior Director, Toronto, Canada 416-875-4689

Investor Relations Contact
Asim Imran, Senior Vice President, Head of Investor Relations, 416-955-7804

SOURCE Royal Bank of Canada