DundeeWealth has agreed to buy a 60% stake in Toronto-based institutional money manager Aurion Capital Management.
Exact figures were not disclosed, but the deal involves both cash and common shares of DundeeWealth, a portion of which will be payable after three years and subject to the retention of key members of the Aurion team. Aurion employees will retain 40% of the company.
“Our investment in Aurion represents a long-term strategic investment that broadens our wealth management platform while at the same time supporting our expansion into the institutional market,” says David Goodman, president and chief executive officer of DundeeWealth.
The background of the deal is similar to the events which led to Royal Bank’s acquisition of Vancouver’s Phillips, Hager & North. Aurion recently conducted a strategic review and identified a need to broaden and diversify its product offerings, while at the same time providing stronger incentives to its investment professionals. Aurion was in the process of reviewing how to achieve these objectives when DundeeWealth made contact about creating a partnership.
Related Stories |
“Aurion Capital will continue to operate under its current name at the same location, with no changes in management, staff, products and investment philosophy and process,” says Neil Jacoby, president and chief investment officer of Aurion. “At the same time, we are now supported by the financial resources and distribution capabilities of a respected partner. DundeeWealth is that partner.”
Aurion was founded in 1996 and has more than $4.5 billion in assets under management, $3.3 billion of which is pension assets. The transaction is expected to close by mid-June, pending regulatory approvals.
To comment on this story, email jody.white@rci.rogers.com.