MONTREAL, Jan. 4, 2021 /CNW Telbec/ - Fiera Capital Corporation (TSX: FSZ) ("Fiera Capital" or the "Company"), a leading independent asset management firm, today announced that it has entered into an agreement to sell Bel Air Investment Advisors ("Bel Air"), its ultra high net worth private wealth platform, to Hightower Advisors ("Hightower"), one of the largest registered investment advisors in the United States.
Concurrently, the Company also announced the completion of the sale of Wilkinson Global Asset Management ("WGAM"), its New York-based private wealth investment manager, to Wilkinson Global Capital Partners LLC, pursuant to the call option entered into on December 1, 2018.
"After thorough strategic review of our private wealth operations in the U.S. and in light of the evolution of our private wealth business model, we elected to divest Bel Air and WGAM, two high quality businesses," said Jean-Guy Desjardins, Chairman of the Board and Chief Executive Officer. "These transactions are also a testament to our commitment to create value for our shareholders through disciplined capital allocation, which remains a key strategic priority for us."
"Our competitive advantage in the private wealth space is predicated on our fully discretionary model and on providing clients unique and differentiated investment offerings through tailored and holistic portfolio solutions," said Jean–Philippe Lemay, Global President and Chief Operating Officer. "The transactions announced today allow us to better align our remaining regional platforms for private wealth management and transition them to a globally integrated model."
The aggregate selling price for both transactions is approximately C$81 million, excluding transaction costs, and is subject to a final working capital adjustment. For the last twelve-month period ended September 30, 2020, Bel Air and WGAM generated combined revenues of C$74.3 million and incurred total expenses, excluding depreciation and amortization, restructuring, integration and other costs and share-based compensation, of C$62.3 million.
As at September 30, 2020, Bel Air and WGAM assets under management were approximately C$14.4 billion, of which approximately C$2.1 billion will remain sub-advised by Fiera Capital.
The Company will receive the proceeds related to the sale of Bel Air upon closing, which is expected to occur in the first quarter of 2021, subject to customary closing conditions.
With regards to WGAM, the Company has entered into a multi-year financing agreement and as such, proceeds from this sale will be received over time.
RBC Capital Markets and Stifel GMP served as financial advisors to Fiera Capital in the Bel Air transaction.
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 condensed and annual consolidated financial statements, and its latest 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.
About Fiera Capital Corporation
Fiera Capital is a leading independent global asset management firm with approximately C$177.7 billion in assets under management as of September 30, 2020. The Company provides institutional, retail and private wealth clients with access to full-service integrated money management solutions across traditional and alternative asset classes. Fiera Capital's depth of expertise, diversified investment platform and commitment to delivering outstanding service are core to our mission of being at the forefront of investment management science to create sustainable wealth for clients. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange. www.fieracapital.com
Headquartered in Montreal, Fiera Capital, with its affiliates in various jurisdictions, has offices in over a dozen cities around the world, including New York (U.S.), London (UK), and Hong Kong (SAR).
In the U.S., asset management services are provided by the Company's U.S. affiliates who are investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC) or exempt from registration. Registration with the SEC does not imply a certain level of skill or training. For details on the particular registration of, or exemptions therefrom relied upon by, any Fiera Capital entity, please consult this webpage .
Additional information about Fiera Capital Corporation, including the Company's annual information form, is available on SEDAR at www.sedar.com.
SOURCE Fiera Capital Corporation