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. www.fieracapital.com
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 comparable terminology.
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.
SOURCE: FIERA CAPITAL CORPORATION