Canada’s Fiera Capital has agreed to acquire Clearwater Capital Partners, a Hong Kong-based asset manager that focuses on core private credit investment strategies.
Clearwater, an employee-owned firm, manages $1.4bn in assets that will now be added to Fiera’s private alternative investments unit. Apart from Hong Kong, the firm also has offices in Singapore, Seoul, Mumbai and Connecticut.
Fiera Capital will pay $12m in cash and $9m in Class A subordinate voting shares upon deal closing, which is expected in the coming months.
It plans to pay a maximum of $44m over five years, depending on the fulfilment of certain milestones.
Fiera Capital global president and COO Vincent Duhamel said: “The transaction establishes Fiera Capital’s Asia-Pacific footprint and provides a rare opportunity to gain entry to the Asian private credit market.
“Combining Clearwater’s deep investment experience in Asia with Fiera Capital’s global distribution capabilities enhances our ability to meet the growing demand from clients for a full spectrum of investments in credit and special situations.”
Clearwater will continue to be headed by Robert Petty and Amit Gupta as co-CEOs and CIOs.
“We are proud to choose a partner that supports our investment independence, and also celebrates our culture, entrepreneurship, risk adjusted approach to building diversified portfolios while mentoring best-in-class talent across our business. Joining Fiera Capital is the clear next step to grow our business and continue to provide profitable and innovative alternative investment solutions to even more clients around the world,” Petty and Gupta noted.
The deal is subject to regulatory nod and is anticipatedto be slightly accretive to earnings in 2019.