CI Financial to acquire majority stake in Australian fund manager

The acquisition of Grant Samuel Funds Management expands CI’s presence in global markets

By: IE Staff
November 3, 2016 November 3, 2016
06:30

Toronto-based CI Financial Corp.(CI) announced an agreement on Wednesday to purchase an 80% stake in Grant Samuel Funds Management (GSFM).

Sydney, Australia-based GSFM is an independent manager and distributor of investment strategies and products in the Australian and New Zealand markets with assets under management in excess of A$6 billion ($6.16 billion).

Terms of the purchase were not disclosed. The transaction is expected to close on or about Nov. 15,.

“We are very excited to partner with a well-established firm led by an experienced and highly regarded management team,” says Peter Anderson, CEO of CI, in a statement. “This acquisition aligns CI with a proven competitor in one of the world’s fastest-growing pension markets, and is a significant new platform for CI as we expand our presence in global markets.”

“With this transaction, GSFM gains the backing of an accomplished asset management and distribution firm that is one of the largest investment fund companies in Canada,” adds Andrew McKinnon, CEO of GSFM.

“The CI business model is similar to the GSFM model and the two businesses are culturally aligned. The move will allow GSFM to continue to develop and further build upon its already strong client relationships for its existing partners — Epoch, Tribeca, Payden & Rygel and Triple 3 — in the institutional and retail markets,” McKinnon says.

Under the agreement, current GSFM executives will retain a 20% stake in the company. As well, the existing GSFM team will remain in place, and executives including McKinnon, Damien McIntyre, head of distribution, and Peter Nichols, chief operating officer will continue to manage all aspects of the company, which will continue to operate under the GSFM name.

“CI has been looking for an opportunity to further expand outside Canada, and Australia was identified as an attractive market, with strong organic growth and a sophisticated investor base,” Anderson says.”We look forward to working with the GSFM team to support the continued rapid growth of their business.”

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