Montreal-based Fiera Capital Corp. announced on Friday that it will acquire Toronto-based investment management firm CGOV Asset Management for $114.2 million, representing the latest in a string of acquisitions for the Quebec money manager.
CGOV, which was established in 1995, focuses on high-net worth (HNW) and institutional investors. It had approximately $5.3 billion in assets under management (AUM) as of Dec. 31, 2017.
The deal, which is subject to regulatory approval and expected to close in the second quarter of 2018, will provide Fiera with the critical mass necessary “to be a competitive force” in the HNW market, said Jean-Phillipe Lemay, president and chief operating officer of Fiera Capital’s Canadian division, in a statement.
“The transaction is Fiera Capital’s strongest commitment yet to developing leading solutions for both existing and new HNW clients,” he said, adding that the acquisition helps to expand Fiera’s institutional offering.
In a corporate update published on its website, CGOV says the deal will provide the firm with greater access to global talent and resources and access to additional investment solutions, including enhanced fixed-income and alternative asset classes. The firm says there will be no changes to the investment team that currently manages its clients’ equity portfolios.
“The goal is to enhance our client experience, not change it,” the CGOV statement says. “The investment climate continues to evolve as do the needs of clients, and we believe this merger will allow us to serve clients better.”
Following the completion of the transaction, CGOV’s partners and key employees will join Fiera. That includes Ted Ecclestone, portfolio manager with CGOV, who will lead Fiera’s Canadian private-wealth team. Ecclestone has more than 20 years of investment experience and joined CGOV in 2006 after holding senior roles at TAL Private Management and Rockwater Capital.
“The combination of the CGOV team with Fiera Capital is an exciting opportunity for CGOV and its clients,” said Don Cranston, founding partner and chairman of CGOV, in a statement. “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.”
Fiera had more than $128 billion in AUM as at Dec. 31, 2017. The firm provides portfolio management services for institutional, private wealth and retail clients, spanning a broad array of traditional and alternative asset classes.
Fiera has been growing aggressively through acquisitions in recent years, including the 2016 purchases of London, U.K.-based asset manager Charlemagne Capital Ltd. and Dayton, Ohio-based equity management firm Apex Capital Management Inc.
In addition, Fiera announced earlier this month that it had signed an agreement to acquire Hong Kong-based investment firm Clearwater Capital Partners LLC.