Canadian wealth manager CI Financial has agreed to acquire an 80% share in Australia-based Grant Samuel Funds Management (GSFM) for an undisclosed amount.
Founded in July 2007, GSFM is a subsidiary of the Grant Samuel Group with assets under management in excess of AUD6bn. It offers a range of investment strategies and products in the Australian and New Zealand markets. It also owns an equity share in boutique manager Tribeca.
Details of the transaction were not disclosed. The deal is expected to close on or about 15 November 2016.
Under the deal, current GSFM executives will retain a 20% interest in the firm, and existing GSFM team will continue in its place.
CI Financial said GSFM CEO Andrew McKinnon, head of distribution Damien McIntyre, and COO Peter Nichols will continue to manage all aspects of the firm, and the business will continue to operate under the GSFM name.
CI Financial CEO Peter Anderson said: "We are very excited to partner with a well-established firm led by an experienced and highly regarded management team. This acquisition aligns CI with a proven competitor in one of the world's fastest-growing pension markets, and is a significant new platform for CI as we expand our presence in global markets.
"CI has been looking for an opportunity to further expand outside Canada, and Australia was identified as an attractive market, with strong organic growth and a sophisticated investor base. We look forward to working with the GSFM team to support the continued rapid growth of their business."
GSFM CEO Andrew McKinnon said: "With this transaction, GSFM gains the backing of an accomplished asset management and distribution firm that is one of the largest investment fund companies in Canada.
"The CI business model is similar to the GSFM model and the two businesses are culturally aligned. The move will allow GSFM to continue to develop and further build upon its already strong client relationships for its existing partners – Epoch, Tribeca, Payden & Rygel and Triple 3 – in the institutional and retail markets."