Boutique investment firm Lorne Park Capital Partners Inc. (LPCP) is acquiring portfolio manager Crestridge Asset Management Inc., the Toronto-based firms announced on Tuesday.
The two firms have entered a letter of intent that would see Lorne Park acquire all of the shares of Crestridge for a total price of $1.35 million, to be paid out over 18 months.
When the deal closes, Lorne Park will pay $500,000 in cash and $200,000 in its shares; followed by $300,000 in cash and another $200,000 in stock on the first anniversary of closing; and $150,000 in cash on the 18-month anniversary of closing.
If the deal goes ahead as planned, Crestridge will be consolidated with LPCP subsidiary, Bellwether Investment Management Inc.; with Crestridge operating as a division of Bellwether.
The closing, which is expected Aug. 15, is subject to a number of conditions, including a definitive agreement, due diligence, and regulatory approval.
Crestridge provides “discretionary investment management and wealth management services for individuals, trusts and foundations,” according to the companies’ announcement. It had approximately $120 million in assets under management as of May 31.
“We are confident that we have found a new partner in Crestridge that shares similar perspectives on investment management and a commitment to delivering tailored investment solutions to affluent families,” says Robert Sewell, CEO of LPCP and Bellwether, in a statement.
“This proposed acquisition enhances our scale within the investment management industry by providing us with a broader suite of investment solutions and additional resources that will benefit our clients,” adds Jeffrey Black, president and chief investment officer of Crestridge.