TORONTO, July 15, 2013 /CNW/ - Connor Clark & Lunn Financial Group Ltd.
(CC&L Financial Group) today announced that it has entered into an
agreement to sell its structured products business Connor Clark & Lunn
Capital Markets Inc. (CC&L Capital Markets or the Company) to Aston
Hill Financial Inc. (Aston Hill) for cash proceeds that imply a total
value for the Company of $20.5 million.
Completion of the sale is expected to occur on or about August 15, 2013
subject to certain regulatory approvals. On closing CC&L Capital
Markets will be renamed Aston Hill Capital Markets Inc. The terms of
the transaction involve Aston Hill purchasing 80% of the Company from
CC&L Financial Group, Neil Murdoch (President and CEO) and Darren
Cabral (CFO). Following the transaction, Neil Murdoch and Darren Cabral
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 Inc., 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 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. We would like to thank Neil and Darren for
being good partners with us in this business over the years."
Neil Murdoch said "while we are proud to have been part of CC&L
Financial Group, Darren and I are excited to be joining Aston Hill. Our
business has grown significantly in recent years and we believe it will
be beneficial for clients to gain access to the retail oriented
resources of Aston Hill. We believe Aston Hill is a great fit for us
and look forward to working with their talented professionals."
CC&L Financial Group has no intention to dispose of any other business
CC&L Financial Group's decision to sell its interest in this business,
representing less than 3% of its business-wide assets under management,
recognizes that the investment management sub-advisory function for
most of CC&L Capital Markets' products is performed by investment teams
that are not affiliated with CC&L Financial Group. CC&L Financial
Group will focus on the development and distribution of in-house
managed products and will redeploy the proceeds from this transaction
in support of its private markets business consisting of commercial
real estate, private equity and infrastructure and renewable energy.
About Connor, Clark & Lunn Financial Group
Connor, Clark & Lunn Financial Group is a multi-boutique asset
management company that provides a broad range of investment products
and services to institutional, high net-worth and retail investors.
With offices in Vancouver, Edmonton, Calgary, Regina, Toronto, Ottawa,
Montreal and London (England) and New York, CC&L Financial Group and
its affiliate companies are collectively responsible for the management
of over $45 billion in assets.
SOURCE: Connor, Clark & Lunn Financial Group
For further information:
Warren Stoddart, Co-CEO and Managing Partner
Connor, Clark & Lunn Financial Group
Greig McKenzie, Head of Marketing
Connor, Clark & Lunn Financial Group