Magellan executive chairman Andrew Formica says the challenge of restoring the embattled investment firm to its historical place at the top of Australian funds management convinced Sophia Rahmani to succeed him as Magellan chief executive.

Ms Rahmani will leave $9 billion fund manager Maple-Brown Abbott in May to run Magellan’s asset management business and lead Mr Formica’s hunt for boutiques, talented investors and teams willing to join Magellan.