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Fiera Capital acquires alternative asset management funds of GMP Investment Management


Fiera Capital has reached an agreement with GMP Capital to acquire flagship funds pertaining to the GMP Diversified Alpha Fund and the Canadian ABCP Fund, representing approximately CAD570m in assets under management.

These funds are currently being managed by GMP Investment Management (GMPIM).

As part of this transaction, key members of GMPIM’s team, including Jason Marks, chief executive officer, chief investment officer and managing partner, will join the management team of a newly created Fiera Capital subsidiary, in which management will have a minority ownership interest.

Under the terms of the agreement, the purchase price includes a CAD10.75m cash consideration, in addition to the aforementioned minority interest by the management team. Fiera will also pay 25 per cent of performance fees based on the acquired assets for a period of three years, subject to certain minimum asset under management thresholds. The transaction is expected to be immediately accretive to earnings.

"This transaction makes perfect sense as it will allow us to expand our alternative strategies, an investment area that has been experiencing significant momentum over the past few years in the North American marketplace and that will continue to grow in the future. For clients, this acquisition will translate into enhanced product innovation and offering, with customised investment solutions that can meet their specific investment objectives," says Jean-Guy Desjardins (pictured), chairman and chief executive officer of Fiera.

Fiera has CAD58bn in assets under management, excluding approximately CAD8bn of assets under management acquired as part of the recently announced UBS Global Asset Management transaction, which is subject to regulatory approval and expected to close in the first quarter of 2013.

"We are excited about joining the Fiera team, and we believe this new structure will provide us with the ideal environment to grow and build our unique alternative strategies, while ensuring the quality of our investment solutions and the highest levels of service for our clients," says Marks. "Our first priority will be to ensure a smooth transition for our existing clients, and we will then look to further grow our asset base through the development and launch of innovative products."

The transaction, which is subject to customary conditions, including regulatory approval, is expected to close in the first quarter of 2013.

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