Fiera Capital acquires selected alternative asset management funds of GMP
MONTREAL, Jan. 18, 2013 /CNW Telbec/ - Fiera Capital Corporation ("Fiera" or
the "Firm") (TSX: FSZ) announced today that it has reached an agreement (the
"Agreement") with GMP Capital Inc. ("GMP"), one of Canada's leading
independent investment dealers, to acquire flagship funds pertaining to the
GMP Diversified Alpha Fund ("Alpha Fund") and the Canadian ABCP Fund ("ABCP
Fund"), representing approximately $570 million in assets under management.
These funds are currently being managed by GMP Investment Management L.P.
("GMPIM"). As part of this transaction, key members of GMPIM's team, including
Jason Marks, Chief Executive Officer, Chief Investment Officer and Managing
Partner, will join the management team of a newly created Fiera Capital
subsidiary, in which management will have a minority ownership interest.
Under the terms of the Agreement, the purchase price includes a $10.75 million
cash consideration, in addition to the aforementioned minority interest by the
management team. Fiera will also pay 25 per cent of performance fees based on
the acquired assets for a period of three years, subject to certain minimum
asset under management thresholds. The transaction is expected to be
immediately accretive to earnings.
"This transaction makes perfect sense as it will allow us to expand our
alternative strategies, an investment area that has been experiencing
significant momentum over the past few years in the North American marketplace
and that will continue to grow in the future. For clients, this acquisition
will translate into enhanced product innovation and offering, with customized
investment solutions that can meet their specific investment objectives," said
Jean-Guy Desjardins, Chairman and Chief Executive Officer of Fiera.
Fiera has $58 billion in assets under management, excluding approximately $8
billion of assets under management acquired as part of the recently announced
UBS Global Asset Management transaction, which is subject to regulatory
approval and expected to close in the first quarter of 2013.
This new acquisition reinforces Fiera's position as a leading-edge Canadian
investment manager, focused on delivering a broad range of innovative
investment solutions to a diversified clientele of investors. The Alpha and
ABCP Funds adhere to proprietary and disciplined absolute return-focused
strategies designed to deliver steady growth, manage volatility and offer an
attractive investment for high-net-worth and institutional clients.
"We are excited about joining the Fiera team, and we believe this new
structure will provide us with the ideal environment to grow and build our
unique alternative strategies, while ensuring the quality of our investment
solutions and the highest levels of service for our clients," said Jason
Marks. "Our first priority will be to ensure a smooth transition for our
existing clients, and we will then look to further grow our asset base through
the development and launch of innovative products."
"We are very proud to have attracted this experienced and highly credible
investment team, and we see tremendous potential as we expand our absolute
return offering," added Mr. Desjardins. "The team brings a wealth of
experience to Fiera, with numerous members having held senior positions at
large Canadian financial institutions prior to founding GMPIM."
The transaction, which is subject to customary conditions, including
regulatory approval, is expected to close in the first quarter of 2013.
GMP Investment Management L.P. ("GMPIM") is a Toronto‐based asset management
firm that strictly adheres to its proprietary strategies, systems and
technologies, which have proven to deliver steady growth and manage volatility
- a predictable investment for high‐net‐worth individuals and
institutional clients. While the processes to generate GMPIM's consistent
performance are complex, the benefits are simple: preservation of capital, low
volatility, and optimal absolute returns over the long term.
About Fiera Capital Corporation
Fiera Capital Corporation is a leading publicly traded, independent investment
firm. The Firm is one of only a handful of full service, multi-product
investment firms in Canada, offering clients a proven top tier track record in
Canadian and foreign equity and fixed income management as well as depth and
expertise in asset allocation and non-traditional investments.
Additional information relating to the Firm, including the Firm's annual
information form, is on SEDAR at www.sedar.com.
This document may contain certain forward-looking statements. These statements
relate to future events or future performance, and reflect management's
expectations or beliefs regarding future events, including business and
economic conditions and Fiera Capital's growth, results of operations,
performance and business prospects and opportunities. Such forward-looking
statements reflect management's current beliefs and are based on information
currently available to management. In some cases, forward-looking statements
can be identified by terminology such as "may", "will", "should", "expect",
"plan", "anticipate", "believe", "estimate", "predict", "potential",
"continue", "target", "intend" or the negative of these terms, or other
By their very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and a number of factors could cause
actual events or results to differ materially from the results discussed in
the forward-looking statements. In evaluating these statements, readers should
specifically consider various factors that may cause actual results to differ
materially from any forward-looking statement.
These factors include, but are not limited to, market and general economic
conditions, the nature of the financial services industry, and the risks and
uncertainties detailed from time to time in Fiera Capital's interim and annual
consolidated financial statements, and its Annual Report and Annual
Information Form filed on www.sedar.com. These forward-looking statements are
made as of the date of this document, and Fiera Capital assumes no obligation
to update or revise them to reflect new events or circumstances.
Mélanie Tardif, CPA, CMA NATIONAL Public Relations 514.843.2060
SOURCE: FIERA CAPITAL CORPORATION
To view this news release in HTML formatting, please use the following URL:
CO: FIERA CAPITAL CORPORATION
NI: FIN MNA
-0- Jan/18/2013 12:30 GMT
Press spacebar to pause and continue. Press esc to stop.