Fiera continues expansion strategy with acquisition of Charlemagne Capital

Montreal-based Fiera Capital Corp. is looking to expand its investment offerings and distribution networks, as well as become a global player, with the acquisition of London, U.K.-based Charlemagne Capital Ltd.

The asset-management firm announced it has reached an agreement to purchase Charlemagne, an independent asset manager with US$2.2 billion in assets under management (AUM), on Friday. Once completed, the transaction will bring Fiera’s total AUM to almost $112 billion. The transaction is valued at approximately £40.7 million.

“Our goal is to become a truly global asset manager and we have already established a strong and growing presence in North America,” says Jean-Guy Desjardins, Fiera’s chairman and CEO, during a conference call about the proposed transaction. “The logical next move in terms of growth is to further develop our European presence and the acquisition of Charlemagne Capital would create the European growth platform we are looking to build from.”

Furthermore, Charlemagne specializes in emerging and frontier markets, an area of great interest for Fiera, Desjardins says: “We have been vocal about our desire to strengthen [our capabilities in these asset classes] and believe the timing is right for us to enter emerging-market strategies with a brand that has a solid track record of relative performance.”

The transaction, which is subject to regulatory approvals, also expands Fiera’s distribution network to institutional and private wealth clients in Europe. Says Desjardins: “[The proposed acquisition] would enable us to meet the increased demand that we are already seeing for our strategies in Europe.”

Currently, Fiera has distribution networks in North America, South Africa, Japan, and Australia as well as the U.K. and select European markets.

The Charlemagne purchase follows several other acquisitions that Fiera has announced earlier this year. In July, Fiera completed a joint venture transaction with Toronto-based Aquila Infrastructure Management Inc. and announced that its U.S. division acquired Rye Brook, N.Y.-based alternative investment firm Larch Lane Advisors LLC. The asset manager also finalized the purchase of Dayton, Ohio-based Apex Capital Management Inc. in June.

These transactions, along with the proposed acquisition of Charlemagne Capital, are in keeping with Fiera’s stated goal to reach $200 billion in AUM by the year 2020.

“Our growth plan is driven by acquisitions and organic growth,” says Desjardins. “We are proud of the broad North American base we have created and we continue to grow.

Photo copyright: anshar/123RF