CI Financial to Acquire Remaining Stake in Lawrence Park Asset Management, Taking its Ownership in the Alternative Investment Manager to 100%
CI Financial Corp. (TSX: CIX; NYSE: CIXX) has agreed to acquire full ownership of Lawrence Park Asset Management, a Toronto-based firm specializing in alternative fixed-income investments, managing about C$600 million. The acquisition aims to integrate Lawrence Park's expertise into CI’s asset management strategy, enhancing its leadership in alternative investments. CI's subsidiary, CI Global Asset Management, is already Canada's largest provider in this space, managing $3.7 billion in assets. The transaction is expected to close in Q2 2021, subject to regulatory approval.
- CI Financial will fully integrate Lawrence Park's expertise in alternative investing, enhancing its market position.
- The acquisition allows CI to expand its offerings in credit-focused strategies, a growing market.
- Lawrence Park has a proven investment approach, which could lead to enhanced returns and reduced volatility for CI's existing funds.
- The acquisition is subject to regulatory approval, creating uncertainty in the deal's completion timeline.
- Potential integration challenges may arise given the differences between CI and Lawrence Park's operational cultures.
CI Financial Corp. (“CI”) (TSX: CIX; NYSE: CIXX) and Lawrence Park Asset Management (“Lawrence Park”) today announced that they have reached an agreement in which CI will acquire full ownership of the alternative fixed-income investment firm.
CI currently holds a minority interest in Lawrence Park, a Toronto-based alternative asset manager founded in 2011. Lawrence Park manages approximately C
“The Lawrence Park team has decades of experience in fixed-income markets and alternative investing, and has been a valued partner for CI since 2012. We are thrilled to finally bring that expertise in-house,” said Kurt MacAlpine, CI Chief Executive Officer. “Alternatives offer an array of benefits and are becoming increasingly embraced by advisors and investors. Building on CI’s leadership in this category is a priority for us as we modernize our asset management business.”
“We share CI’s commitment to alternative investing and are excited to be part of the continued development of innovative mandates in this space,” said Andrew Torres, Founding Partner and Chief Executive Officer of Lawrence Park. “We look forward to integrating into the CI Global Asset Management organization, with its extensive resources, research capabilities and distribution opportunities.”
Following the completion of the transaction, the Lawrence Park team will continue to manage its current funds: CI Lawrence Park Alternative Investment Grade Credit Fund, which is available as a liquid alternative mutual fund and ETF (TSX: CRED, CRED.U), and Lawrence Park Credit Strategies Fund, a hedge fund available to accredited investors. The team’s investment approach will not change.
Lawrence Park employs a simple but proven relative value approach to identify and profit from inefficiencies in global corporate bond markets (Canada, U.S., and Europe) and utilizes a disciplined active portfolio management process. This involves extensive attention to risk management, including hedging strategies against rising interest rates, currency, and selected credit risk. Using this investment process, Lawrence Park seeks to enhance yield, reduce volatility, and deliver consistent returns to investors in varying interest rate and credit environments.
CI subsidiary CI Global Asset Management (“CI GAM”) is Canada’s largest provider of liquid alternative investment strategies1, managing
The Lawrence Park transaction is expected to close in the second quarter of 2021, subject to regulatory approval and other customary closing conditions.
About CI Financial
CI Financial Corp. is an independent company offering global asset management and wealth management advisory services. CI managed and advised on approximately C
CI’s U.S. wealth management businesses consist of BDF LLC, Bowling Portfolio Management LLC, The Cabana Group, LLC, Congress Wealth Management, LLC, Doyle Wealth Management, LLC, One Capital Management, LLC, The Roosevelt Investment Group, LLC, RGT Wealth Advisors, LLC, Stavis & Cohen Private Wealth, LLC and Surevest LLC.
CI is listed on the Toronto Stock Exchange under CIX and on the New York Stock Exchange under CIXX. Further information is available at www.cifinancial.com.
- Source: Canadian Association of Alternative Strategies & Assets, as at December 31, 2020.
The mutual fund and exchange-traded fund securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.
This press release contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to CI Financial Corp. (“CI”) and its products and services, including its business operations, strategy and financial performance and condition. Forward-looking statements are typically identified by words such as “believe”, “expect”, “foresee”, “forecast”, “anticipate”, “intend”, “estimate”, “goal”, “plan” and “project” and similar references to future periods, or conditional verbs such as “will”, “may”, “should”, “could” or “would”. These statements are not historical facts but instead represent management beliefs regarding future events, many of which by their nature are inherently uncertain and beyond management’s control. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. The material factors and assumptions applied in reaching the conclusions contained in these forward-looking statements include that the acquisition of Lawrence Park will be completed and its asset levels will remain stable, the investment fund industry will remain stable and that interest rates will remain relatively stable. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market conditions, including interest and foreign exchange rates, global financial markets, changes in government regulations or in tax laws, industry competition, technological developments and other factors described or discussed in CI’s disclosure materials filed with applicable securities regulatory authorities from time to time. The foregoing list is not exhaustive and the reader is cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, CI undertakes no obligation to update or alter any forward-looking statement after the date on which it is made, whether to reflect new information, future events or otherwise.
CI Global Asset Management is a registered business name of CI Investments Inc.
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