Toronto-based CI Financial Corp. Tuesday announced that it has reached an agreement to acquire a significant minority interest in Lawrence Park Capital Partners Ltd., an alternative asset manager focusing on fixed-income and credit strategies.
CI (TSX:CIX) will also make a significant investment in LP Capital Partners’ inaugural fund, Lawrence Park Credit Strategies Fund, which will be launched in March 2012. In addition, CI will provide administrative services to the fund and assist LP Capital Partners in developing and executing a growth strategy.
LP Capital Partners is a Toronto-based investment management firm founded in 2011 by David Fry, CEO, and Andrew Torres, chief investment officer. The team members, which include partners Peter Metcalfe and John Young, have over 60 years of combined experience in trading fixed-income and credit-related products and in managing trading teams.
“In Lawrence Park, we have identified an exceptional opportunity for growth and a firm that can benefit from CI’s support,” says Stephen MacPhail, CI president and CEO. “The portfolio managers, led by David Fry and Andrew Torres, have used their talent and extensive experience in the income markets to develop a credit-focused fund that is unique in the Canadian marketplace.”
The relationship is part of a strategy of seeking selected growth opportunities in the alternative asset management space, MacPhail says. “CI is always seeking to partner with superior portfolio managers across our business, and alternative investing, with its specialized and distinct strategies, is becoming increasingly attractive.”
CI also owns a significant interest in Red Sky Capital Management Ltd., an alternative investment manager led by Timothy Lazaris that has posted strong absolute and relative returns since inception in September 2010.
Lawrence Park Credit Strategies Fund is available to accredited investors only.