GMP Sells Certain Assets Under Management to Fiera Capital Corporation
-- Focused on ensuring a smooth transition of assets with minimal
disruption to clients
-- GMP Investment Management announces leadership transition plans
TORONTO, Jan. 18, 2013 /CNW/ - GMP Capital Inc. ("GMP") (TSX: GMP) today
announced that it entered into a definitive agreement (the "Purchase
Agreement") in respect of a transaction that will result in Fiera Capital
Corporation ("Fiera") purchasing approximately $570 million in assets under
management from GMP Investment Management L.P. ("GMPIM"), for cash
consideration of $10.75 million.
Pursuant to the terms of the Purchase Agreement, GMP will also be entitled to
receive 25 per cent of performance fees earned in connection with the assets
acquired by Fiera for a period of three years, subject to certain exceptions
and minimum retained assets under management conditions.
A number of funds, including the GMP Diversified Alpha Fund ("Alpha Fund") and
the Canadian ABCP Fund ("ABCP Fund"), are being sold to Fiera and these assets
will continue to be managed by Jason Marks, Chief Executive Officer of GMPIM,
and certain other executives of GMPIM, who have agreed to join Fiera following
the completion of the transaction. Commenting on the transaction, Mr. Marks
said "We would like to thank our partners at GMP for their support in helping
us build the business of GMPIM and we look forward to working with our new
partners at Fiera. Our immediate priority is to ensure a smooth transition and
we are working closely with GMP to maintain the highest standards of service
and commitment to our clients."
Concurrently, GMPIM announced that Dan McClure has been appointed co-Chief
Executive Officer of GMPIM with immediate effect, and will succeed Mr. Marks
upon closing of the transaction. Mr. McClure joined GMPIM in July 2010 and
brings extensive industry experience to his new role. The new leadership team
will continue to manage the GMPIM Equity Opportunities Fund and the Genesis
Fund, and expects to launch new equity-based fund offerings over the next 18
months. "The sale of these assets represents an opportunity to strategically
reposition GMPIM and align its mandate more closely with GMP's core equities
business and our partners at Richardson GMP," said Dan McClure.
Commenting on the transaction, Harris Fricker, President and Chief Executive
Officer of GMP said "We are committed to preserving the client relationships
of the alternative investments business. Investors in the Alpha Fund and the
ABCP Fund will continue to benefit from the same management team that has
overseen their assets since inception."
Completion of the transaction is subject to a number of customary closing
conditions, including regulatory approval. The transaction is expected to be
completed in the first quarter of 2013.
ABOUT GMP CAPITAL INC.
GMP Capital Inc. ("GMP") is a leading independent diversified financial
services firm headquartered in Toronto, Canada, providing a wide range of
financial products and services to a client base that includes corporate
clients, institutional investors and high-net-worth individuals in three
integrated reporting segments. The Capital Markets segment provides investment
banking, including advisory and underwriting services, institutional sales and
trading and research through offices located in Toronto, Montreal, Calgary,
New York, Miami, Dallas, London, Perth and Sydney. The Capital Markets segment
conducts its business through the following operating entities: GMP Securities
L.P., GMP Securities, LLC, Griffiths McBurney Corp., GMP Securities Europe LLP
and GMP Securities Australia Pty Limited. Wealth Management consists of GMP's
non-controlling ownership interest in Richardson GMP Limited, a full-service
independent firm focused on providing exclusive and comprehensive wealth
management and investment services delivered by an experienced team of
investment professionals. The Alternative Investments segment consists of the
investment management and alternative investment products provided by GMP
Investment Management L.P. GMP is listed on the Toronto Stock Exchange under
the symbol "GMP". For further information, please visit our corporate website
GMP Capital Inc.
Rocco Colella, Director, Investor Relations 145 King Street West, Suite 300,
Toronto, Ontario M5H 1J8 Tel: (416) 941-0894; Fax: (416) 943-6175
SOURCE: GMP Capital Inc.
To view this news release in HTML formatting, please use the following URL:
CO: GMP Capital Inc.
-0- Jan/18/2013 12:30 GMT
Press spacebar to pause and continue. Press esc to stop.