Toronto-based Front Street Capital 2004 (Front Street Capital) announced on Friday that a group of strategic investors will acquire a controlling ownership interest in the asset-management firm.

FS Group Holdings Ltd., a new company formed by the group of investors, will acquire certain partnership interests of Front Street Capital. Any further terms of the agreement were not disclosed. The transaction is expected to close prior to Dec. 31 and is subject to approval of Canadian securities regulatory authorities.

“We are excited to make this investment and partner with one of the most dynamic and talented management teams in the Canadian asset-management industry,” says Gordon McMillan, one of the principals of this group of investors, in a statement. “We intend to build upon Front Street Capital’s successful Canadian mutual fund and hedge fund platform and to leverage the depth of its highly regarded portfolio management team.”

Gary Selke, Front Street Capital’s CEO, says in a statement that the move will provide the firm with additional resources to continue its growth strategy.

“Front Street Capital is pleased to welcome this new group as partners,” he adds. “We are confident that with the significant experience and additional resources they provide, we can take Front Street Capital further toward its goal of being one of Canada’s leading asset managers.”

The individual portfolio managers at Front Street Capital are expected to remain following completion of the transaction and will remain actively involved in the portfolio management functions at the firm. There are no anticipated changes to the current services provided to clients of the firm, including to the Jemekk group of funds, as a result of the transaction, according to the announcement.

“This is a very positive development for the firm, as a broader ownership base is an investment in the firm’s future and provides not only a path for sustainable growth, but also significant opportunities for the firm’s key assets — our employees,” says Frank Mersch, chief investment officer of Front Street Capital, in a statement.