Connor Clark & Lunn (CC&L) Financial Group has entered into an agreement to sell its structured products business Connor Clark & Lunn Capital Markets to Aston Hill Financial for cash proceeds that imply a total value for the company of $20.5 million.
Once the deal is closed, CC&L Capital Markets will be renamed Aston Hill Capital Markets.
The terms of the transaction involve Aston Hill purchasing 80% of the company from CC&L as well as CC&L Capital Markets’ president and CEO, Neil Murdoch, and chief financial officer, Darren Cabral. Following the transaction, they will hold the remaining 20% of the company not owned by Aston Hill.
The business being acquired by Aston Hill includes management or advisory agreements related to 14 TSX-listed closed-end investment products with an aggregate market value of $1.25 billion.
Excluded from the sale is the CC&L Core Income and Growth Fund (approximately $90 million in assets), management of which will be assigned to Connor, Clark & Lunn Funds, an affiliate within the CC&L Financial Group, effective immediately prior to closing.
Aston Hill has made a significant investment in the development of its retail business, which includes a presence in both open-ended and closed-end investment products” said Warren Stoddart, managing partner and co-CEO of CC&L Financial Group.
“We believe the interests of CC&L Capital Markets’ clients will be well supported by the continuity of the management team and the depth of Aston Hill’s resources that are available to the business.
Completion of the sale is expected to occur on or about August 15, subject to certain regulatory approvals.
CC&L Financial Group has no intention to dispose of any other business interests.
Read more: