Purpose Investments, a provider of exchange traded funds (ETFs), mutual funds and closed-end funds, has agreed to acquire all the outstanding shares of Toronto-based Redwood Asset Management.
The deal will make Purpose the sole owner of Redwood, and will add $320m in assets to Purpose’s portfolio.
Redwood will continue to operate as a separate entity under its own brand following the acquisition, and will continue to be headed by its existing management team with its president and CEO Peter Shippen.
“We are thrilled to work alongside the team at Purpose Investments and together grow a fund management business uniquely positioned to deliver both low cost quantitative and unique active strategies to advisors and their clients,” Shippen said.
Purpose president and CEO Som Seif said: “At Purpose, we have always strived to be the leading innovator in the investment management space, providing high quality investment solutions with fair fees to Canadians.
“Redwood’s unique investment offerings backed by the management of the best-in-class specialist investment boutiques complements our promise to continue bringing to market high quality and fundamental, rules-based investment strategies to Canadians.”