Canadian asset manager Fiera Capital has agreed to acquire CGOV Asset Management, a local investment management firm specialised in serving HNW and institutional investors, in a stock-cash deal worth $114.2m.
CGOV, founded in 1995, focuses on traditional equity strategies including Canadian equity, global equity and total equity. The Ontario-based firm’s assets under management at the end of December 2017 totalled nearly C$5.3bn.
Fiera Capital will pay 42% of the deal amount in cash and the remainder in class A subordinate voting shares.
CGOV partners and key staff, including portfolio manager Ted Ecclestone will migrate to Fiera Capital as part of the deal.
Ecclestone, who has been working at CGOV since 2006, will now spearhead the Canadian Private Wealth team at Fiera Capital.
Fiera Capital president and COO of Canadian division Jean-Phillipe Lemay said: “With a solid base in Ontario and Western Canada, the critical mass gained as a result of the transaction allows Fiera Capital to be a competitive force in the highly attractive high-net-worth segment across Canada. The transaction is Fiera Capital’s strongest commitment yet to developing leading solutions for both existing and new high-net-worth clients.”
The deal is expected to be completed in the second quarter of this year, subject to regulatory nod.
CGOV founding partner and chairman Don Cranston said: “The transaction will provide a stable, long-term platform for our investment team to continue delivering value. It will also bring robust investment solutions to CGOV clients, including access to enhanced fixed income and private alternative strategies.”
The latest transaction comes close on the heels of Fiera Capital’s acquisition of Hong Kong-based asset manager Clearwater Capital Partners.