Can investors’ infatuation with fixed income last? Gluskin Sheff + Associates Inc. seems to think so, laying out about $70-million in cash and stock to buy an asset manager specializing in global credit.
Gluskin Sheff, which manages roughly $7-billion, has agreed to pay $15-million in cash and issue 1.9-million shares to buy employee-owned Blair Franklin Asset Management. The purchase brings Gluskin Sheff $625-million of new assets (assuming clients stick around) that are almost all in a global credit fund. Peter Zaltz, the chief investment officer at Blair Franklin, will become one of the top bond managers at Gluskin Sheff.