Toronto-based CI Financial Corp. has reached an agreement to acquire full ownership of Toronto-based First Asset Capital Corp. The deal, which is subject to regulatory approval, would give CI access to an exchange-traded fund (ETF) platform and provide First Asset with extra resources in areas such as operations and technology, according to an announcement released by CI.
“With First Asset, we broaden and diversify our lineup of operating businesses and gain a successful firm with a proven management team and high growth potential,” says Stephen A. MacPhail, CI’s president and CEO, in a statement. “First Asset provides CI Financial with a future distribution platform for its actively managed investment products, including access to an ETF platform.”
Following the close of the transaction, which is expected by yearend, First Asset will continue to operate as a separate business under its current name and under the direction of Barry H. Gordon, the firm’s president and CEO, as well as the rest of the First Asset management team. First Asset, which has approximately $3 billion in assets under management, will also continue to market and service its own products.
“This transaction strengthens First Asset’s ability to grow and to expand its product lineup,” says Gordon in a statement. “CI Financial provides us with the backing of a financially strong parent company, with significant capabilities in active investment management, as well as extensive resources in operations, administration and technology.”
Toronto-based INFOR Financial Inc. acted as financial advisor to First Asset on this transaction. Terms of the deal have not been disclosed.