Citing growing investor interest in alternative investments, CI Global Asset Management is acquiring Forge First Asset Management, it announced Tuesday.
Forge, a Toronto-based alternative investment manager, oversees four funds with about $1 billion in assets under management.
“The addition of Forge First will expand our capabilities in this important segment and serve as an excellent complement to our existing lineup of liquid alternatives and private markets funds,” Marc-André Lewis, president and chief investment officer of CI GAM, said in a release.
He added that the Forge First team has “an impressive track record of results” in the alternatives space, with a strong focus on risk management that has paid off during market downturns.
The terms of the transaction, expected to close in the fourth quarter, were not disclosed. Under the deal, Forge will keep its name and continue to operate as a separate business.
Forge First manages two liquid alternatives mutual funds and two limited partnerships distributed through investment dealers, including major Canadian bank-owned dealers.
In a release, Forge CEO Andrew McCreath said CI GAM was the “ideal partner” to drive the company’s next stage of growth.
“CI GAM’s scale and extensive capabilities in distribution and marketing can boost our exposure to advisors across Canada, as well as to family offices and institutional investors,” he said.
CI GAM’s parent company, CI Financial Corp., was purchased by Abu Dhabi-based Mubadala Capital in a US$4.7-billion deal finalized last month. Under its new ownership, CI Financial is continuing to grow. A U.S. subsidiary of the company announced the acquisition of two European money managers just last week.