Financial services holding company Jovian Capital Corp. has signed an agreement to acquire 50% of Pescara Partners Inc. Pescara manages both a domestic and an offshore fund of funds.

Pescara offers alternative investment products distributed through the financial advisory community. Pescara’s domestic fund of funds was Canada’s top performing Canadian dollar fund of funds for 2003, with a return of 16.73% for the year ended January 31, 2004.

Jovian will pay a mix of cash and Jovian shares in exchange for the Pescara shares. The deal is expected to close on or about July 30, subject to regulatory approval.

Jovian currently holds a 50% interest in RJS Global Investments Inc., which holds the remaining 50% of Pescara’s shares. Jovian’s net effective ownership position will be 75% of Pescara following completion of this acquisition.

“We have been very pleased with our affiliation with Pescara to date, and as hedge funds have become more and more popular with investors, we felt that this was a good opportunity to increase our stake in Pescara,” said Philip Armstrong, president and CEO of Jovian.

As part of the acquisition, Raj Lala, resident of Pescara, will head Jovian’s distribution arm, Gibraltar Alternative Asset Consulting Group Inc.