Family Office
Canadian fund company buys high-end asset manager
AGF boosts private-client business with an 80% stake in
Highstreet Partners. Canadian asset manager AGF Management has
set itself up to become more of a force in Canada's high-wealth
and institutional funds business by acquiring the bulk of
Highstreet Partners, a privately held investment counsel firm
based in London, Ontario.
Toronto-based AGF will take an 80% stake in Highstreet and
Highstreet's management team, led by CEO Rob Badun, will hang on
to the remaining 20%. The transaction includes a combination of
cash and, subject to the Toronto Stock Exchange's approval, AGF
non-voting class B shares. Highstreet's partners have agreed to
stagger their cash-out of the stock portion of their payment
through a three-year period.
AGF did not disclose the purchase price. Both parties expect the
deal will be done before this month is out.
New levels
"[Highstreet] provides us both executive leadership and
complements our investment management expertise," says AGF's CEO
Blake Goldring.
Highstreet will become part of AGF Private Investment Management
-- AGF PIM for short -- which Badun will have a hand in running
as president.
Tying up with AGF "will enable Highstreet to achieve new levels
of growth, while we continue to provide our clients the
investment and service excellence they expect," says Badun. "I
look forward to working with the AGF PIM firms to develop a
vision and strategy for maximizing growth and capitalizing on
synergies."
Highstreet -- which manages the U.S. equivalent of around $4.2
billion for private investors, pension plans, foundations and
other institutions -- uses a quantitative investment process that
"has proven consistently to outperform the market while
protecting capital in down markets," according to AGF.
AGF manages about $36 billion, mostly in mutual funds, for about
1 million investors. When the deal with Highstreet is completed,
AGF PIM will manage around $9.6 billion. AGF danced around
questions about plans to introduce Highstreet-managed retail
mutual funds at an analyst conference after the deal was
announced last week. Highstreet's Canadian Equity fund is rated
highly, but then AGF is fairly glutted with Canadian-stock
offerings, according to Morningstar Canada analyst Rudy Luukko.
-FWR
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