Toronto-based Purpose Investments Inc., a new investment management company established by Som Seif, founder and former CEO of Claymore Investments Inc., plans to launch a new closed end fund.
NexC Partners Corp. has filed a preliminary prospectus for an initial public offering that will consist of Class A non-voting shares and Class F non-voting shares at a price of $10 per share. The fund will be managed by Purpose.
The closed end fund aims to provide long-term capital appreciation through investing in a high quality portfolio of North American dividend-paying equity securities and an investment of up to 30% in Purpose, and to make quarterly cash distributions (targeted at 5% a year).
Purpose says it will be focused on managing low fee, intelligent investment products for Canadian institutional and retail investors and is committed to enabling all investors to have access to great investment products at reasonable fees.
Seif grew Claymore to approximately $8 billion in assets under management over the company’s seven year history and successfully sold the firm to BlackRock Inc. in early 2012.
The NexC offering is being made on a best efforts agency basis in each of the provinces and territories in Canada through a syndicate of investment dealers co-led by TD Securities Inc., CIBC and RBC Capital Markets and including BMO Capital Markets, Canaccord Genuity Corp., GMP Securities L.P., National Bank Financial Inc., Macquarie Private Wealth Inc., Raymond James Ltd., Desjardins Securities Inc., Dundee Securities Ltd., Manulife Securities Incorporated, and Rothenberg Capital Management Inc.