TORONTO, Aug. 24 /CNW/ - The Board of Directors of GMP Capital Inc. (the "Board") ("GMP") (TSX: GMP) announced today that effective October 1, 2010, Kevin Sullivan will transition from his role as CEO and assume the role of Deputy Chairman of GMP. In his new role, Kevin will spend his full-time efforts on client focused initiatives, working on key strategic projects, mentoring GMP's professionals and increasing our brand awareness.
The Board also announced the appointment of Harris Fricker, currently President of GMP, as CEO to succeed Kevin Sullivan. In addition, Mr. Fricker has been elected to the Board effective October 1, 2010.
Stanley Beck, Chairman of the Board, said "Kevin has provided invaluable leadership to the firm, growing the franchise from its entrepreneurial roots to a full service financial services firm and positioning it to succeed in today's market". Mr. Beck continued, "Since Kevin informed the Board that he would like to transition from the CEO role, the Board has been working to ensure Kevin's new role with GMP allows him to be fully engaged and committed to continue promoting the interests and growth of GMP. Kevin leaves a substantial foundation on which to build. We are fortunate Kevin will also remain as a board member and significant shareholder of GMP. The Board has been actively involved with this orderly transition and it represents a natural evolution to a process which began when Harris Fricker was appointed as GMP's President back in July 2008. We have the utmost confidence in Harris and his ability to continue building the GMP franchise and delivering value for our clients, employees and shareholders."
Mr. Sullivan said, "It has been an honour and an extraordinary privilege to lead such a great business over the past 11 years." Mr. Sullivan noted that GMP has been steadily expanding its senior leadership in recent years, and that today's announcement continues a transition process that has been underway for some time and he felt that now was the right time to move forward. Mr. Sullivan continued, "This transition leaves me with a real sense of pride in what has been achieved, but also with great excitement about my ability in this new role to help GMP pursue the opportunities that lie ahead. Great organizations need to effect change by bringing in new ideas and leadership to bear and I am extremely confident that Harris will excel with these new challenges. I have worked closely with Harris for over eight years and he has a proven record of executing winning strategies and growing profitable businesses and as President he has helped deepen our relationships with key clients. I appreciate the commitment and dedication of the Board, senior management and employees at GMP over the years and I look forward to continuing to work closely with Harris, the Board and the senior management team as we take GMP to its next phase of success."
Commenting on his appointment Mr. Fricker said, "GMP is home to an exceptionally talented team of professionals, a unique culture and strong client relationships. Thanks to Kevin's leadership, we are presented with a tremendous opportunity to continue to build upon our reputation as a leading independent Canadian investment dealer and a growing financial services firm. It is a great honour to have the opportunity to lead this outstanding firm over the next phase of its evolution".
BACKGROUND ON HARRIS FRICKER
Mr. Fricker assumed the role of President of GMP Securities L.P. ("GMP Securities") in July 2008 and was appointed President of GMP Capital Inc. in May 2009. He has served as Vice Chairman, Co-Head of Investment Banking, GMP Securities, for the past two years and has also served as Co-Chairman of GMP Securities Europe LLP since its formation in 2006. Prior to joining GMP in 2002, Mr. Fricker held senior roles at several leading Canadian financial institutions. He has extensive experience in the North American capital markets along with an entrepreneurial acumen, co-founding an on-line investment management company. Mr. Fricker holds a BA from Saint Francis Xavier University and a MA from Oxford University, which he attended as a Rhodes Scholar.
GMP CAPITAL INC.
GMP Capital Inc. carries on business through the following principal entities: GMP Securities L.P., Griffiths McBurney Corp., GMP Securities Europe LLP, EdgeStone Capital Partners, L.P. and GMP Investment Management L.P. GMP Capital Inc. also has a significant non-controlling ownership interest in Richardson GMP Limited. The GMP Capital Inc. website is located at gmpcapital.com. GMP Capital Inc. has offices in Toronto, Calgary, Montreal and London, England. GMP Securities L.P. is a leading independent Canadian investment dealer focused on investment banking and institutional equities for corporate clients and institutional investors. GMP Securities L.P. can be found on the web at gmpsecurities.com. Griffiths McBurney Corp. services institutional clients in the United States while GMP Securities Europe LLP provides investment banking and institutional equity services to clients located in Europe. EdgeStone Capital Partners, L.P. is a leading private equity firm, providing capital, strategic direction and business and financial advice to help promising mid-market and early stage companies achieve their full potential. EdgeStone Capital Partners, L.P. can be found on the web at edgestone.com. GMP Investment Management L.P., through its private funds, seeks to generate superior risk-adjusted investment returns over the long term by executing selected investment strategies. GMP Investment Management L.P.'s offerings are aimed at both high-net-worth individuals and institutional investors. Richardson GMP Limited is a full-service investment firm, combining tradition and innovation to offer Canadian families and entrepreneurs access to innovative wealth management and investment services delivered by an experienced team of independent investment professionals. Richardson GMP Limited can be found on the web at richardsongmp.com.
This press release contains "forward-looking statements" as defined under applicable Canadian securities laws and additional forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent management's beliefs, expectations, estimates and projections regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. These statements include, but are not limited to, statements made with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in this press release. GMP's primary business activities are both competitive and subject to various risks. These risks include market, credit, liquidity, operational and legal and regulatory risks and other risk factors including, without limitation, variations in the market value of securities, the volatility and liquidity of equity trading markets, the volume of new financings and mergers and acquisitions, competition in the marketplace for suitable investments, sustainability of fees, nature and type of portfolio company investments, ability to realize carried interest entitlements and dependence on key personnel. Other factors, such as general economic conditions, including exchange rate fluctuations, may also have an effect on GMP's results of operations. Many of these risks and uncertainties can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking statement made by us or on our behalf. For a description of risks that could cause our actual results to materially differ from our current expectations, please see the "Risk Management" section in GMP's 2009 Annual MD&A and "Risk Factors" in GMP's annual information form dated March 1, 2010. Material assumptions or factors underlying the forward-looking statements contained in this press release are set out in the "Business Environment and Market Outlook" section in the 2009 Annual MD&A, as updated in GMP's Management's Discussion and Analysis for the three and six months ended June 30, 2010 and include without limitation the impact of recent capital market uncertainty in light of growing concerns over sovereign debt issues within the European Union, increased equity market volatility, widening credit spreads, lower demand for Canadian resources from less certain economic activity in China and other emerging markets, and a weakening Canadian dollar relative to the United States dollar. Although forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Certain statements included in this press release may be considered a "financial outlook" for purposes of applicable Canadian securities laws, and as such the financial outlook may not be appropriate for purposes other than this press release. The forward-looking statements contained in this press release are made as of the date of this press release, and should not be relied upon as representing GMP's views as of any date subsequent to the date of this press release.
SOURCE GMP Capital Inc.
For further information: For further information: GMP Capital Inc., Rocco Colella, Director, Investor Relations, 145 King Street West, Suite 300, Toronto, Ontario, M5H 1J8, Tel: (416) 941-0894, Fax: (416) 943-6175, firstname.lastname@example.org, or email@example.com