Fiera Capital Corporation is to acquire, via its wholly-owned subsidiary Fiera US Holding Inc, Apex Capital Management (Apex), a US growth equity manager with approximately USD7.1 billion in assets under management (AUM) as at 31 December, 2015.
This transaction will more than double Fiera Capital's presence in the US institutional and sub-advisory retail markets and increase total AUM to over CAD111 billion.
"The acquisition of Apex is an important step in advancing our US growth strategy by providing a meaningful complementary presence in the institutional and sub-advisory retail markets, small/mid cap (SMID), small cap and other growth strategies with a long track record of superior performance, and a proven team of investment professionals," says Jean-Guy Desjardins, Chairman and Chief Executive Officer of Fiera Capital. "The addition of Apex to our outstanding team enhances our strong global capabilities in equities for the benefit of our clients."
"Our team is excited to join Fiera Capital, a rapidly-growing independent investment management firm recognized for its client focus and investment performance. Our products and approach will blend smoothly into Fiera Capital's platform, and together we will provide enhanced opportunities to our mutual client bases," said Nitin Kumbhani, Founder and Chief Executive Officer of Apex.
Apex will become part of Fiera Capital's US division and Mr. Kumbhani will assume the role of Vice Chairman and Chief of Growth Equity Strategies of the Firm's US division.
"Apex's expertise and top-quartile performance greatly enhance our presence in the US marketplace with limited distribution overlap," says Benjamin Thompson, President and Chief Executive Officer of Fiera Capital's US division. "This strategic acquisition adds complementary expertise to our platform and strengthens our ability to serve our clients across the US.”
The transaction creates attractive financial benefits. It is expected to be immediately accretive, adding a 10 per cent to 15 per cent accretion to adjusted earnings per share (EPS) within the first full year post closing.
