Fiera Capital Corp. continues to move forward with plans to beef up its asset management division announcing its second acquisition this year.
On Friday morning, Fiera Capital announced it will be acquiring the business of CGOV Asset Management, an Ontario-based investment management firm focused on high net worth and institutional investors with approximately $5.3-billion in assets under management, as of Dec. 31, 2017.
The transaction is valued at $114.2-million and will be paid in cash and shares, with the shares being vested over a five-year period.
"With a solid base in Ontario and Western Canada, the critical mass gained as a result of the transaction allows Fiera Capital to be a competitive force in the highly attractive high-net-worth segment across Canada," said Jean-Philippe Lemay, president and chief operating officer of Fiera Capital's Canadian Division in a statement. "The transaction is Fiera Capital's strongest commitment yet to developing leading solutions for both existing and new high-net-worth clients. Together, we will clearly be stronger, and are excited about the prospect of also growing our institutional offering through the addition of CGOV's investment expertise within Fiera Capital's already strong investment platform."
Fiera is Canada's third-largest independent asset manager, hitting $128.9-billion in assets under management (AUM) at the end of 2017. The firm has been rapidly growing its assets over the last several years in Canada as well as in the United States.
Fiera's chief executive officer Jean-Guy Desjardins has been touting the company's growth plans for several years now and stated last June at the company's annual general meeting that it is on target to hit $200-billion in AUM by 2020.
Earlier this month, Fiera acquired Singapore-based Clearwater Capital Partners, a privately held employee-owned asset manager with US$1.4-billion in AUM.
Following completion of the CGOV transaction, CGOV partners and key employees will be joining Fiera Capital including Ted Ecclestone, a portfolio manager at CGOV who will lead Fiera Capital's Canadian Private Wealth team.
"The transaction will provide a stable, long-term platform for our investment team to continue delivering value. It will also bring robust investment solutions to CGOV clients, including access to enhanced fixed income and private alternative strategies," said Don Cranston, founding partner and chairman of CGOV Asset Management.
The transaction is subject to regulatory approval and is expected to close in the second quarter of 2018.