GMP Capital Trust reports results for fourth quarter and year ended December 31, 2006



    Pretax income for year rises 27%; quarterly revenues exceed $100 million;
    GMP Private Client achieves profitability in Q4

    TORONTO, March 1 /CNW/ - GMP Capital Trust (the Fund) today released its
financial results for the three and 12-month periods ended December 31, 2006.
Revenue reached a quarterly record of $103.6 million in the fourth quarter of
2006 and $357.3 million for the fiscal year 2006, representing a
year-over-year increase of 40% over fiscal year 2005. Net income for the
fourth quarter and the year was $30.6 million and $120.0 million,
respectively, and the Fund generated an annualized return on unitholders'
equity (ROE) of 44.6% and 52.3% for the quarter and the year, respectively.
These results reflect the strong results generated across all business
segments.
    The selected highlights and pro forma data below should be read in
conjunction with the Selected Financial Information and Other Information
sections in this press release.

    
    Fourth Quarter 2006 Highlights

    -   Record revenue of $103.6 million for the three-month period ended
        December 31, 2006 compared with revenue of $53.2 million in the
        two-month period ended December 31, 2005

    -   Pre-tax income of $34.7 million compared with pre-tax income of
        $19.3 million in the fourth quarter 2005

    -   GMP Private Client achieves profitability in the fourth quarter 2006
        with pre-tax income of $0.6 million

    -   Net income of $30.6 million ($0.49 per basic unit) compared with pro
        forma net income of $17.3 million (pro forma earnings of $0.30 per
        basic unit) in the fourth quarter 2005

    -   Annualized ROE of 44.6% compared with pro forma annualized ROE of
        55.9% in the fourth quarter 2005 on average unitholders' equity of
        $274.4 million compared with average unitholders' equity of
        $185.5 million in fourth quarter 2005

    -   Distributable cash of $36.0 million ($0.58 per basic unit) compared
        with pro forma distributable cash of $18.0 million ($0.32 per basic
        unit) in the fourth quarter 2005

    Fiscal 2006 Highlights

    -   Record revenue of $357.3 million, up 40% from revenue of
        $255.7 million in fiscal 2005

    -   Record pre-tax income of $131.1 million, up 27% from pre-tax income
        of $103.6 million in fiscal 2005

    -   Record net income of $120.0 million ($2.01 per basic unit), up
        $23.7 million from pro forma net income of $96.3 million (pro forma
        earnings of $1.70 per basic unit) in fiscal 2005

    -   ROE of 52.3% compared with pro forma annualized ROE of 59.9% in
        fiscal 2005

    -   Distributable cash of $131.5 million ($2.20 per basic unit) compared
        with pro forma distributable cash of $98.5 million ($1.74 per basic
        unit) in fiscal 2005

    -   Payout ratio of 88.4% in fiscal 2006, including special distribution

    -   Ranked No. 1 in total value of common equity underwriting
        transactions completed in Canada, up 27% over fiscal 2005 to
        $2.8 billion

    -   51% growth over fiscal 2005 in total value of M&A advisory mandates
        to US$8.3 billion

    -   Ranked No. 1 in TSX block trading volume for the second consecutive
        year with 11.3% market share
    

    "We achieved excellent results across all our business segments in 2006,
as a result of our focused strategy, the abilities of our people and our
unparalleled execution capabilities in the Canadian mid-market," said Kevin
Sullivan, Chief Executive Officer. "2006 was a year of many new initiatives
and outstanding progress for all of our business segments. We made our entry
into the private equity business with the establishment of our Private Capital
Management segment following our acquisition of EdgeStone Capital Partners.
Our Capital Markets segment established operations in the United Kingdom, and
we further solidified our reputation as an investment banking firm of choice
by our target clients as evidenced by our role in several high-profile deals.
We also saw significant developments in our Wealth Management segment with the
addition of several investment advisory teams, an appreciable increase in our
assets under administration and reaching profitability in our fourth quarter.
These achievements are tangible proof of the strength of human capital at GMP
Capital Trust and of our commitment to providing superior performance for our
clients and unitholders."

    
                       SELECTED FINANCIAL INFORMATION

    -------------------------------------------------------------------------
                              Fourth       Fourth
    Selected financial       Quarter      Quarter
     information               2006         2005     Fiscal 2006  Fiscal 2005
                          ---------------------------------------------------
                           3 months     2 months     12 months    11 months
    ($000, except per        ended        ended        ended        ended
     unit/common share    December 31, December 31, December 31, December 31,
     and % amounts)           2006         2005         2006         2005
    -------------------------------------------------------------------------
    Revenue                   103,597       53,225      357,312      255,672
    -------------------------------------------------------------------------
    Expenses                   68,878       33,934      226,163      152,021
    -------------------------------------------------------------------------
    Income before income
     taxes                     34,669       19,258      131,102      103,604
    -------------------------------------------------------------------------
    Net income                 30,561       13,520      119,964       67,832
    -------------------------------------------------------------------------
    Pro forma net
     income(a,b)                  n/a       17,288          n/a       96,322
    -------------------------------------------------------------------------
    Basic earnings per
     unit/common share(c)  $     0.49   $     0.24   $     2.01   $     1.20
    -------------------------------------------------------------------------
    Diluted earnings per
     unit/common share(c)  $     0.48   $     0.23   $     1.94   $     1.17
    -------------------------------------------------------------------------
    Pro forma basic
     earnings per unit(a)         n/a   $     0.30          n/a   $     1.70
    -------------------------------------------------------------------------
    Pro forma diluted
     earnings per unit(a)         n/a   $     0.29          n/a   $     1.66
    -------------------------------------------------------------------------
    Dividends declared per
     common share                 n/a   $     0.05          n/a   $     0.60
    -------------------------------------------------------------------------
    Cash distributions
     declared per unit     $    0.375   $   0.1042   $   1.4168   $   0.1042
    -------------------------------------------------------------------------
    Special cash
     distributions declared
     per unit              $     0.50          n/a   $     0.50          n/a
    -------------------------------------------------------------------------
    Distributable cash per
     basic unit(d)         $     0.58   $     0.32   $     2.20   $     1.74
    -------------------------------------------------------------------------
    Payout ratio(a,e)           151.9%         n/a         88.4%         n/a
    -------------------------------------------------------------------------
    Return on equity(a)          44.6%         n/a         52.3%         n/a
    -------------------------------------------------------------------------
    Pro forma return on
     equity(a)                    n/a         55.9%         n/a         59.9%
    -------------------------------------------------------------------------

    a.  These figures are considered non-GAAP measures. The selected pro
        forma data has been derived from and should be read in conjunction
        with the "Presentation of Financial Information and Non-GAAP
        Measures" in the 2006 Annual MD&A.  Pro forma data reflects such
        adjustments as are necessary, in the opinion of management, for a
        fair presentation of the results of operations and unitholders'
        equity of the Fund on a pro forma basis following the Conversion.
        Such pro forma information is intended to reflect the financial
        results of the Company as if it had carried on business as an income
        trust during the periods presented. This pro forma data is not
        necessarily indicative of the results that actually would have been
        achieved if the Conversion had taken place and been effective during
        those periods.

    b.  Pro forma net income reflects an adjustment to income tax expense to
        reflect the current tax attributes of the Fund Group under the income
        trust structure. The pro forma income tax expense reflects required
        taxes relating to corporate subsidiaries of the Fund and should be
        read in conjunction with the "Pro forma Net Income Reconciliation"
        and "Quarterly Pro Forma Net Income Reconciliation" sections in the
        2006 Annual MD&A.

    c.  Comparative common shares outstanding have been restated to reflect a
        two-for-one exchange of one common share of the Company for two Fund
        units based on the average common shares outstanding for the
        applicable period.

    d.  Distributable cash per basic unit, a non-GAAP measure, is determined
        by dividing distributable cash by the basic weighted-average number
        of units outstanding for the applicable period, on a basis consistent
        with the determination of net income per basic unit.

    e.  The payout ratio is determined by dividing aggregate cash
        distributions declared by distributable cash.
    

    FOURTH QUARTER 2006 VERSUS FOURTH QUARTER 2005

    Fourth quarter 2006 revenue reached a record $103.6 million, representing
an increase of $50.4 million over fourth quarter 2005. The increase reflects
strong performances from the Capital Markets and Wealth Management segments in
fourth quarter 2006 and the shorter two-month reporting period of fourth
quarter 2005 due to the change in our year end. Revenue for the Capital
Markets segment increased $36.1 million in fourth quarter 2006 compared with
the fourth quarter 2005 driven by sustained momentum in merger and acquisition
(M&A) activity in the Canadian capital markets and the participation of GMP
Securities in a number of advisory transactions and equity financings in the
oil and gas, industrials and special situations and mining sectors during this
period. Sales and trading commission revenues were $24.7 million, an increase
of $11.1 million compared with fourth quarter 2005 due to greater activity in
the Canadian equity markets driven by an increase in demand for
commodity-based equities. Revenues of the Wealth Management segment rose by
$8.0 million to $11.0 million in fourth quarter 2006 reflecting the successful
growth of GMP Private Client's team of professionals and steady growth in
assets under administration. The Private Capital Management segment
contributed $6.3 million to revenues in fourth quarter 2006 reflecting steady
contributions from management fees generated by the EdgeStone Funds.
    Expenses in the fourth quarter 2006 were $68.9 million, representing an
increase of $34.9 million compared with fourth quarter 2005. Compensation and
benefits expenses in the fourth quarter 2006 were $51.6 million representing
an increase of $24.7 million compared with fourth quarter 2005 due to higher
variable incentive-based compensation expenses, which increased $19.4 million
over fourth quarter 2005 as a result of higher revenue generated across all
business segments. Fixed salaries and benefits expenses increased $3.9 million
due to continued growth in the Wealth Management and Capital Markets segments
and the integration of salaries and benefits expenses associated with the
Private Capital Management segment. The remaining increase of $1.4 million in
compensation and benefits expenses compared to fourth quarter 2005 reflects
growth in Fund unit-based and loan-based compensation programs.
    Non-compensation related expenses in the fourth quarter 2006 were
$17.3 million, representing an increase of $10.2 million compared with fourth
quarter 2005 due to the inclusion of the expenses of the Private Capital
Management segment in fourth quarter 2006, the shorter reporting period in
fourth quarter 2005 and continued growth in the Wealth Management and Capital
Markets segments in 2006. Selling, general and administrative expenses were
$4.4 million higher in fourth quarter 2006 compared to fourth quarter 2005
with the Capital Markets segment reporting a $2.0 million increase as a result
of the shorter reporting period in fourth quarter 2005, the inclusion of
$1.4 million in expenses associated with the Private Capital Management
segment and continued growth in the Wealth Management segment which reported a
$1.0 million increase in selling, general and administrative expenses.
Interest expenses increased $1.7 million over fourth quarter 2005 primarily
due to $0.7 million in financing costs incurred in the Corporate segment in
fourth quarter 2006 and higher client-related interest expense reflecting
higher client-related balances in the Wealth Management segment. Amortization
expense of $4.5 million represents a $4.1 million increase over fourth quarter
2005 mainly due to the amortization of intangible assets acquired in
connection with the EdgeStone acquisition and higher monthly amortization
expenses associated with the lease of new Toronto offices. The office
expansion and upgrade in September 2006 was undertaken to accommodate larger
advisory teams in GMP Private Client, growth in GMP Securities and to provide
enhanced facilities to our clients.
    Net income in the fourth quarter 2006 was $30.6 million (or $0.49 per
basic unit) compared with pro forma net income of $17.3 million (or $0.30 per
basic unit) in the fourth quarter 2005. For the fourth quarter 2006,
annualized ROE was 44.6% compared with pro forma ROE of 55.9% in the fourth
quarter 2005, on average unitholders' equity of $274.4 million compared with
average unitholders' equity of $185.5 million in fourth quarter 2005.
Distributable cash was $36.0 million (or $0.58 per basic unit) in the fourth
quarter 2006 compared with pro forma distributable cash of $18.0 million (or
$0.32 per basic unit) in the fourth quarter 2005. Cash distributions declared,
excluding the special cash distribution, were $23.3 million, representing a
fourth quarter 2006 payout ratio of 64.8%.

    FISCAL 2006 VERSUS FISCAL 2005

    Revenue for fiscal 2006 reached a record $357.3 million, representing an
increase of $101.6 million (or 39.8%) over fiscal 2005 reflecting the record
results achieved this year in the Capital Markets segment which delivered an
increase of $68.9 million, revenue growth in the Wealth Management segment of
$21.8 million and the contribution to revenue of $12.6 million from the
Private Capital Management segment for the period from July 4, 2006 (the date
of the EdgeStone acquisition) to December 31, 2006.
    Expenses in fiscal 2006 were $226.2 million, representing an increase of
$74.1 million (or 48.8%) over fiscal 2005. This increase was mainly related to
higher compensation and benefits expenses, which rose $51.7 million as a
result of higher variable incentive-based compensation expenses, which
increased $39.7 million due to strong overall business performance.
Non-compensation related expenses for fiscal 2006 were $52.4 million,
representing an increase of $22.4 million (or 74.9%) compared with fiscal 2005
as a result of higher transaction volumes experienced in the Capital Markets
segment, operational growth in the Wealth Management segment and the inclusion
of expenses associated with the Private Capital Management segment since its
acquisition in July 2006.
    Net income was $120.0 million (or $2.01 per basic unit) in fiscal 2006,
representing an increase of 24.6% over pro forma net income of $96.3 million
(or $1.70 per basic unit) in fiscal 2005. ROE was 52.3% in fiscal 2006
compared with pro forma annualized ROE of 59.9% in fiscal 2005. Distributable
cash was $131.5 million (or $2.20 per basic unit) in fiscal 2006 compared with
pro forma distributable cash of $98.5 million (or $1.74 per basic unit) in
fiscal 2005.

    
                         RESULTS OF BUSINESS SEGMENTS
    

    The following section provides an analysis of the Fund Group's three
business segments and the corporate segment for the fourth quarter 2006 and
the fourth quarter 2005. For a discussion of business segment results for
fiscal 2006 and fiscal 2005 see the 2006 Annual MD&A. These segments are based
upon the products and services provided and the type of customer served, and
they reflect the manner in which financial information is currently evaluated
by management. For further details relating to segmented information see
note 28 to the 2006 Annual Financial Statements.

    CAPITAL MARKETS

    The following table presents the results of the Capital Markets segment
for the fourth quarter 2006 and the fourth quarter 2005.

    
                                                     ------------------------
                                                        Fourth       Fourth
                                                       Quarter      Quarter
                                                         2006         2005
    -------------------------------------------------------------------------
                                                       3 months     2 months
                                                        ended        ended
                                                    December 31, December 31,
    ($000, unless otherwise indicated)                   2006         2005
    -------------------------------------------------------------------------
    Revenue                                              87,257       51,166
    -------------------------------------------------------------------------
      Investment banking                                 55,205       32,160
    -------------------------------------------------------------------------
      Commission income                                  24,739       13,611
    -------------------------------------------------------------------------
      Principal activities                                3,376        3,196
    -------------------------------------------------------------------------
      Interest income                                     3,106        2,096
    -------------------------------------------------------------------------
      Other income                                          831          103
    -------------------------------------------------------------------------
    Expenses                                             47,787       28,224
    -------------------------------------------------------------------------
      Employee compensation and benefits                 40,661       23,588
    -------------------------------------------------------------------------
      Selling, general and administrative                 6,112        4,137
    -------------------------------------------------------------------------
      Interest                                              596          298
    -------------------------------------------------------------------------
      Amortization                                          418          201
    -------------------------------------------------------------------------
    Income before income taxes and non-controlling
     interest                                            39,470       22,942
    -------------------------------------------------------------------------
    Number of employees                                     228          189
    -------------------------------------------------------------------------
    

    Revenue in the Capital Markets segment for fourth quarter 2006 was
$87.3 million, representing an increase of $36.1 million (or 70.5%) compared
with fourth quarter 2005.
    The following table presents investment banking revenue by sector earned
by the Capital Markets segment for fourth quarter 2006 compared with fourth
quarter 2005.

    
                                                     ------------------------
                                                        Fourth       Fourth
                                                       Quarter      Quarter
                                                         2006         2005
    -------------------------------------------------------------------------
                                                       3 months     2 months
                                                        ended        ended
                                                    December 31, December 31,
    ($000, unless otherwise indicated)                   2006         2005
    -------------------------------------------------------------------------
    Mining                                               14,783       12,789
    -------------------------------------------------------------------------
    Oil and gas                                          18,091       14,404
    -------------------------------------------------------------------------
    Industrials and special situations                   17,998        1,787
    -------------------------------------------------------------------------
    Technology and healthcare                             3,878        1,565
    -------------------------------------------------------------------------
    Non-bank financial service                              307        1,434
    -------------------------------------------------------------------------
    Telecommunications, cable and media                     148          181
    -------------------------------------------------------------------------
    Total Investment Banking Revenue                     55,205       32,160
    -------------------------------------------------------------------------
    

    Investment banking revenue was $55.2 million in fourth quarter 2006,
representing an increase of $23.0 million (or 71.7%) over fourth quarter 2005.
Investment banking revenue in fourth quarter 2006 was driven by $24.9 million
in advisory fees, which rose $20.5 million from $4.4 million in advisory fees
recorded in fourth quarter 2005. Of particular note, GMP Securities acted as
financial advisor in fourth quarter 2006 to Atlas Tube, Inc. on its sale to
the Carlyle Group, a transaction valued at approximately US$1.5 billion. Our
involvement in increasingly larger deals is a testament to the team at GMP
Securities and its growing franchise. The total value of M&A transactions
announced in the Canadian marketplace in the fourth quarter 2006 declined
17.9% to approximately US$102.5 billion from approximately US$124.8 billion in
the fourth quarter of calendar 2005. Consistent with the trend in the Canadian
marketplace, the number of M&A transactions announced in Canada in the fourth
quarter 2006 in which GMP Securities acted as financial advisor decreased to 3
from 5 in fourth quarter 2005, and the total value of such transactions
decreased 14.3% to approximately US$1.8 billion from approximately
US$2.1 billion in the fourth quarter of calendar 2005(1).
    Underwriting revenue was $30.3 million in fourth quarter 2006,
representing a $2.5 million increase from fourth quarter 2005. The total
dollar value of common equity underwriting transactions led or co-led by GMP
Securities increased to approximately $826.4 million in fourth quarter 2006,
representing an increase of 11.3% from approximately $742.3 million in the
fourth quarter of calendar 2005. This result is more favourable when compared
with the performance of the Canadian capital markets, which experienced a 1.0%
decrease in the dollar value of common equity underwriting for the same period
of time. GMP Securities ranked number one among Canadian investment dealers in
the dollar value of common equity issuances in the fourth quarter 2006,
compared to its number two position in the fourth quarter 2005(2).
    Sales and trading commissions were $24.7 million in fourth quarter 2006,
representing an increase of $11.1 million (or 81.8%) over fourth quarter 2005
due to greater activity in the Canadian equity markets over this time driven
by an increase in client-related demand for commodity-based equities.
Facilitation losses were 13.0% of gross commissions generated compared with
8.9% in fourth quarter 2005 as a result of increased volatility in equity
pricing, particularly in the commodity sector where GMP Securities actively
executed trades on behalf of clients. In the fourth quarter 2006, GMP
Securities ranked number two in equity block trading volume on the TSX
reporting total block trading volume of 1.7 billion shares in fourth quarter
2006, down from its number one position in the fourth quarter of calendar 2005
when it was involved in the trading of 1.8 billion shares(3).
    Revenue from principal activities was $3.4 million in fourth quarter
2006, which was relatively unchanged from revenue of $3.2 million recorded in
the fourth quarter 2005. Revenue from principal activities is not a
significant focus of current operations with most securities acquired
incidental to the core business.
    Interest income was $3.1 million in fourth quarter 2006, representing an
increase of $1.0 million (or 48.2%) from fourth quarter 2005 primarily due to
the shorter reporting period in fourth quarter 2005 and higher interest earned
on GMP Securities' own cash position as a result of higher cash balances
compared with fourth quarter 2005.

    
    --------------------------------
    (1) Source: Bloomberg as at February 7, 2007. Data contains announced
        transactions based in Canada in the specified period; includes target
        or seller and acquirer.

    (2) Source: FPinfomart as at February 7, 2007. Data is ranked by value of
        completed transactions and is presented on a "Full Credit to Book"
        basis whereby the entire transaction value is allocated to the
        bookrunner. For these purposes, "equity" includes the following:
        private placements with a $1.5 million minimum; special warrants,
        irrespective of whether the issuer has received the total proceeds;
        common shares and units; convertible debt; and exercise of over-
        allotment option of original transaction launched during the period
        reported on. For these purposes, "equity" excludes the following:
        preferred shares, preferred hybrids, income trusts, rights offerings,
        and other derivatives.

    (3) Source: CanadaEquity.com as at February 7, 2007.
    

    The following table presents employee compensation and benefits expenses
for the fourth quarter 2006 compared with fourth quarter 2005. These expenses
represent the largest component of total expenses for the Capital Markets
segment.

    
                                                     ------------------------
                                                        Fourth       Fourth
                                                       Quarter      Quarter
                                                         2006         2005
    -------------------------------------------------------------------------
                                                       3 months     2 months
                                                        ended        ended
                                                    December 31, December 31,
    ($000, unless otherwise indicated)                   2006         2005
    -------------------------------------------------------------------------
    Fixed salaries and benefits                           3,986        2,419
    -------------------------------------------------------------------------
    Variable incentive-based compensation                34,688       20,127
    -------------------------------------------------------------------------
    Fund unit/stock-based compensation                    1,987        1,042
    -------------------------------------------------------------------------
    Total Employee Compensation and Benefits             40,661       23,588
    -------------------------------------------------------------------------
    Ratio of Total Compensation and Benefits
     to Revenue                                            46.6%        46.1%
    -------------------------------------------------------------------------
    

    Total expenses in the fourth quarter 2006 were $47.8 million,
representing an increase of $19.6 million (or 69.3%) from fourth quarter 2005.
This increase was mainly due to higher employee compensation and benefits
expenses, which rose $17.1 million on a year-over-year basis. Variable
incentive-based compensation expenses accounted for $14.6 million of the
increase as a result of higher revenue generation. Variable incentive-based
compensation as a percentage of revenue remained virtually unchanged at 39.8%
in the fourth quarter 2006 compared with 39.3% in the fourth quarter 2005.
    Fixed salaries and benefits expenses were $4.0 million in fourth quarter
2006, representing an increase of 64.8% over fourth quarter 2005. This
increase was mainly due to the shorter reporting period in fourth quarter 2005
and increased levels of employment in 2006 primarily in the operations,
finance and administrative areas to support the growth in business volumes and
activity. In addition, 10 professionals joined the Fund Group in fourth
quarter 2006 as part of the successful start-up of GMP Europe. Fund
unit/stock-based compensation costs increased as a result of higher
participation in the executive unit loan plan and an increase in the fair
value of options granted under the Fund unit option plan and outstanding in
the fourth quarter 2006 compared with the fourth quarter 2005. The ratio of
total compensation and benefits expenses to revenue for the fourth quarter
2006 was 46.6% compared with 46.1% in the fourth quarter 2005 and reflects
investments made this quarter to establish our GMP Europe operations and
continued investment in our various support departments over this time.
    Total non-compensation expenses were $7.1 million, representing an
increase of $2.5 million (or 53.7%) compared with fourth quarter 2005.
Selling, general and administrative expenses accounted for $2.0 million of the
increase in non-compensation related expenses in fourth quarter 2006. This
increase was largely due to the shorter reporting period in fourth quarter
2005. Occupancy costs and related amortization increased by $0.3 million in
fourth quarter 2006 as a result of the higher costs associated with the larger
office space.
    For the fourth quarter 2006, the Capital Markets segment recorded income
before income taxes and non-controlling interest of $39.5 million,
representing a 72.0% increase from the fourth quarter 2005.

    WEALTH MANAGEMENT

    The following table presents the results of the Wealth Management segment
for the fourth quarter 2006 compared with the results for fourth quarter 2005.

    
                                                     ------------------------
                                                        Fourth       Fourth
                                                       Quarter      Quarter
                                                         2006         2005
    -------------------------------------------------------------------------
                                                       3 months     2 months
                                                        ended        ended
                                                    December 31, December 31,
    ($000, unless otherwise indicated)                   2006         2005
    -------------------------------------------------------------------------
    Revenue                                              10,961        3,003
    -------------------------------------------------------------------------
      Commission income                                   5,739        1,887
    -------------------------------------------------------------------------
      Investment management and fee income                2,944            -
    -------------------------------------------------------------------------
      Interest income                                     2,166        1,116
    -------------------------------------------------------------------------
      Other income                                          112            -
    -------------------------------------------------------------------------
    Expenses                                             10,336        3,995
    -------------------------------------------------------------------------
      Employee compensation and benefits                  6,232        1,731
    -------------------------------------------------------------------------
      Selling, general and administrative                 2,171        1,116
    -------------------------------------------------------------------------
      Interest                                            1,452          961
    -------------------------------------------------------------------------
      Amortization                                          481          187
    -------------------------------------------------------------------------
    Income/(loss) before income taxes and
     non-controlling interest                               625         (992)
    -------------------------------------------------------------------------
    Number of employees                                      91           47
    -------------------------------------------------------------------------
    Number of investment advisors                            38           20
    -------------------------------------------------------------------------
    Number of advisory teams                                 27           16
    -------------------------------------------------------------------------
    Assets under administration ($millions)               3,258        1,754
    -------------------------------------------------------------------------
    

    The Wealth Management segment reported revenue of $11.0 million in fourth
quarter 2006, representing an increase of $8.0 million from the fourth quarter
2005. This increase reflects the growing contribution of the segment's
investment advisory teams. Fourth quarter 2006 revenue was comprised of
commissions of $5.7 million, fee revenue of $2.9 million and interest revenue
of $2.2 million. Fee-based revenues for fourth quarter 2006 include a
$1.0 million positive adjustment made in the quarter to accrue fees earned and
not yet received as at December 31, 2006.
    Six new advisory teams were added across the Toronto and Calgary offices
during the fourth quarter 2006, bringing the total number of advisory teams in
the Wealth Management segment to 27 as at December 31, 2006. Assets under
administration were $3.3 billion in the fourth quarter 2006, representing an
increase of 85.7% over the fourth quarter 2005. Assets in managed account
programs grew to $522.2 million in the fourth quarter 2006 compared with
$79.7 million in the fourth quarter 2005, reflecting growth in fee-based
clientele and GMP Private Client's continued development of offerings.
    As of the date hereof, the Wealth Management segment has a total of 28
investment advisory teams located across its Calgary, Toronto, and Vancouver
offices. In addition, the Calgary office opened a satellite branch in Banff
this quarter which we believe is well positioned to serve that market's high
net worth demographic. GMP Private Client now manages approximately
$3.5 billion of client assets in equities, fixed income securities, mutual
funds and managed account programs.

    
                                        -------------------------------------
                                                   Advisory Teams
    -------------------------------------------------------------------------
                                            At           At           At
                                       February 28, December 31, December 31,
    Office Location                        2007         2006         2005
    -------------------------------------------------------------------------
    Toronto                                 16           16           10
    -------------------------------------------------------------------------
    Calgary                                  8            8            4
    -------------------------------------------------------------------------
    Vancouver                                4            3            2
    -------------------------------------------------------------------------
    Total                                   28           27           16
    -------------------------------------------------------------------------
    

    During the fourth quarter 2006, GMP Private Client implemented several
technological tools to enhance client experience and improve advisor
productivity. Automated account opening and internet communication tools have
enabled advisors to provide clients with exceptional service. In addition, GMP
Private Client is developing insurance and wealth protection solutions to
deliver premiere wealth services to our target clientele.
    The following table presents employee compensation and benefits expenses
for the Wealth Management segment for the fourth quarter 2006 compared with
the expenses for fourth quarter 2005.

    
                                                     ------------------------
                                                        Fourth       Fourth
                                                       Quarter      Quarter
                                                         2006         2005
    -------------------------------------------------------------------------
                                                       3 months     2 months
                                                        ended        ended
                                                    December 31, December 31,
    ($000)                                               2006         2005
    -------------------------------------------------------------------------
    Fixed salaries and benefits                           1,133          521
    -------------------------------------------------------------------------
    Variable incentive-based compensation                 4,554        1,018
    -------------------------------------------------------------------------
    Fund unit-based compensation                             99           47
    -------------------------------------------------------------------------
    Investment advisor transition assistance                446          145
    -------------------------------------------------------------------------
    Total Employee Compensation and Benefits              6,232        1,731
    -------------------------------------------------------------------------
    

    The Wealth Management segment reported expenses of $10.3 million for the
fourth quarter 2006, representing an increase of $6.3 million over the fourth
quarter 2005. These expenses included $6.2 million in compensation and
benefits expenses and $4.1 million in non-compensation related expenses.
Non-compensation related expenses for the fourth quarter 2006 increased
$1.8 million over fourth quarter 2005, reflecting increased selling, general
and administrative expenses due to higher levels of business activity,
primarily in support of the Calgary and Vancouver offices. Also included in
non-compensation related expenses was $0.3 million in amortization expenses
mainly related to $3.2 million in capitalized pre-operating expenses incurred
in the development of the Wealth Management segment, which is being amortized
over three years. Beginning in September 2006, occupancy costs for the Wealth
Management segment increased reflecting higher costs associated with the
larger office space in Toronto.
    The Wealth Management segment reported income before income taxes and
non-controlling interest of $0.6 million for the fourth quarter 2006 compared
with a loss of $1.0 million in the fourth quarter 2005. This result was
primarily due to GMP Private Client's successful implementation of its growth
strategy in key target markets.

    PRIVATE CAPITAL MANAGEMENT

    The following table presents the results for the Private Capital
Management segment which consists of the business and operations of EdgeStone
for the fourth quarter 2006.

    
                                                                  -----------
                                                                     Fourth
                                                                    Quarter
                                                                      2006
    -------------------------------------------------------------------------
                                                                   3 months
                                                                     ended
                                                                 December 31,
    ($000, unless otherwise indicated)                                2006
    -------------------------------------------------------------------------
    Revenue                                                            6,268
    -------------------------------------------------------------------------
      Investment management and fee income                             6,108
    -------------------------------------------------------------------------
      Interest income                                                     49
    -------------------------------------------------------------------------
      Other income                                                       111
    -------------------------------------------------------------------------
      Expenses                                                         4,081
    -------------------------------------------------------------------------
    Employee compensation and benefits                                 2,569
    -------------------------------------------------------------------------
      Selling, general and administrative                              1,418
    -------------------------------------------------------------------------
      Interest                                                             6
    -------------------------------------------------------------------------
      Amortization                                                        88
    -------------------------------------------------------------------------
    Income before income taxes and non-controlling interest            2,187
    -------------------------------------------------------------------------
    Number of employees                                                   34
    -------------------------------------------------------------------------
    

    The Private Capital Management segment reported revenue of $6.3 million
in fourth quarter 2006 comprised primarily of fee based revenues generated by
EdgeStone in the management of the EdgeStone Funds.
    The following table presents employee compensation and benefits expenses
for the Private Capital Management segment for the fourth quarter 2006.

    
                                                                  -----------
                                                                     Fourth
                                                                    Quarter
                                                                      2006
    -------------------------------------------------------------------------
                                                                    3 months
                                                                     ended
                                                                 December 31,
    ($000, unless otherwise indicated)                                2006
    -------------------------------------------------------------------------
    Fixed salaries and benefits                                        1,693
    -------------------------------------------------------------------------
    Variable incentive-based compensation                                794
    -------------------------------------------------------------------------
    Fund unit-based compensation                                          82
    -------------------------------------------------------------------------
    Total Employee Compensation and Benefits                           2,569
    -------------------------------------------------------------------------
    

    Expenses for the fourth quarter 2006 reflect normal operating activities.
Selling, general and administrative expenses have increased slightly in the
fourth quarter 2006 compared to third quarter 2006 as a result of higher
business activity experienced during the fourth quarter 2006.
    During the fourth quarter 2006, the EdgeStone Funds made investments in
the aggregate amount of $6.9 million.

    CORPORATE

    The Corporate segment includes inter-segment eliminations between
business segments and enterprise-wide items.
    The following table presents the results for the fourth quarter 2006 and
the fourth quarter 2005.

    
                           --------------------------------------------------
                                 Inter-segment            Enterprise-wide
                           --------------------------------------------------
                              Fourth       Fourth       Fourth       Fourth
                             Quarter      Quarter      Quarter      Quarter
                               2006         2005         2006         2005
    -------------------------------------------------------------------------
                             3 months     2 months     3 months     2 months
                              ended        ended        ended        ended
                          December 31, December 31, December 31, December 31,
    ($000)                     2006         2005         2006         2005
    -------------------------------------------------------------------------
    Revenue                      (934)        (818)          45         (126)
    -------------------------------------------------------------------------
    Expenses                     (934)        (818)       7,608        2,533
    -------------------------------------------------------------------------
      Employee compensation
       and benefits                 -            -        2,089        1,569
    -------------------------------------------------------------------------
      Selling, general and
       administrative            (388)        (110)       1,249        1,018
    -------------------------------------------------------------------------
      Interest                   (546)        (708)         741          (54)
    -------------------------------------------------------------------------
      Amortization                  -            -        3,529            -
    -------------------------------------------------------------------------
    Loss before income
     taxes and
     non-controlling
     interest                       -            -       (7,563)      (2,659)
    -------------------------------------------------------------------------


                           ------------------------
                                Total Corporate
                              Fourth       Fourth
                             Quarter      Quarter
                               2006         2005
    -----------------------------------------------
                             3 months     2 months
                              ended        ended
                          December 31, December 31,
    ($000)                     2006         2005
    -----------------------------------------------
    Revenue                      (889)        (944)
    -----------------------------------------------
    Expenses                    6,674        1,715
    -----------------------------------------------
      Employee compensation
       and benefits             2,089        1,569
    -----------------------------------------------
      Selling, general and
       administrative             861          908
    -----------------------------------------------
      Interest                    195         (762)
    -----------------------------------------------
      Amortization              3,529            -
    -----------------------------------------------
    Loss before income
     taxes and
     non-controlling
     interest                  (7,563)      (2,659)
    -----------------------------------------------
    

    Due to the nature of the activities reported in this segment, management
believes that a period-over-period comparison is not useful. The following
highlights the main factors affecting the results in each period.

    FOURTH QUARTER 2006

    The net loss before income taxes and non-controlling interest of
$7.6 million for the fourth quarter 2006 reflects $3.5 million of amortization
expenses related to intangible assets recorded in connection with the
EdgeStone acquisition. Employee compensation and benefits expenses include the
accrued compensation relating to the Chief Executive Officer of the
Administrator, the administrator of the Fund, and other administrative
support. Selling, general and administrative expense includes enterprise-wide
expenses which have not been allocated to the business segments. Fourth
quarter 2006 includes $0.3 million in professional fees related to internal
control documentation and evaluation to assist the Fund in meeting compliance
requirements of the Canadian Securities Administrators and Multilateral
Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim
Filings and $0.3 million in fees paid in connection with new initiatives which
have not been capitalized. Interest expenses include financing costs
associated with the issuance of senior unsecured notes by GMP Holding
Partnership by way of private placement in November 2006 (the "Notes") and
financing costs incurred in connection with the subordinated loan undertaken
to finance a portion of the EdgeStone acquisition. The net proceeds of the
private placement were used by the Fund Group to repay the subordinated loan
in November 2006 and for general corporate purposes.

    FOURTH QUARTER 2005

    The net loss before income taxes and non-controlling interest of
$2.7 million for the fourth quarter 2005 reflects $1.4 million in executive
incentive-based compensation amounts accrued in the quarter. Selling, general
and administrative expenses included $0.9 million in legal, tax, accounting
and advisory fees incurred in connection with the Conversion. The interest
expense includes an elimination of interest expense paid by GMP Private Client
to the Company relating to an inter-company subordinated loan established
prior to the Conversion.

    DISTRIBUTABLE CASH AND DISTRIBUTIONS

    The following table presents the Fund's determination of distributable
cash for the fourth quarter 2006 compared with the pro forma fourth quarter
2005. Management has made assumptions in preparing the pro forma summary of
distributable cash for fourth quarter 2005. Management believes the following
represents a reasonable estimate of what distributable cash would have been
for this period, had the Fund been in existence during that time. The pro
forma distributable cash summary is not necessarily indicative of the results
that actually would have been achieved if the Fund had been in existence
during this period. These assumptions do not include any possible reserves
that could have been taken by the board of directors of the general partners
of the Operating Partnerships.

    
                                                     ------------------------
                                                        Fourth       Fourth
                                                       Quarter      Quarter
                                                         2006         2005(a)
    -------------------------------------------------------------------------
                                                       3 months     2 months
                                                        ended        ended
                                                    December 31, December 31,
    ($000, 000 of units, except per unit amounts)        2006         2005
    -------------------------------------------------------------------------
    Cash provided by (used in) operating activities      64,380       37,449
    -------------------------------------------------------------------------
    Add/(Deduct):
    -------------------------------------------------------------------------
    Net change in non-cash operating items(b)           (26,207)     (21,682)
    -------------------------------------------------------------------------
    Change in pro forma income taxes payable(c)             n/a        3,767
    -------------------------------------------------------------------------
    Maintenance capital expenditures(d)                    (586)        (148)
    -------------------------------------------------------------------------
    Non-controlling interest                                (50)         (33)
    -------------------------------------------------------------------------
    Earnings of corporate subsidiaries not available
     for distribution(e)                                   (371)         (95)
    -------------------------------------------------------------------------
    Future income taxes(f)                               (1,201)      (1,233)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Distributable cash(g)                                35,965       18,025
    -------------------------------------------------------------------------
    Weighted-average number of units - basic(h)          62,126       56,932
    -------------------------------------------------------------------------
    Weighted-average number of units - diluted(h)        63,632       58,803
    -------------------------------------------------------------------------
    Distributable cash per basic unit(g,h,i)         $     0.58   $     0.32
    -------------------------------------------------------------------------
    Distributable cash per diluted unit(g,h,i)       $     0.57   $     0.31
    -------------------------------------------------------------------------
    Cash distributions declared                          54,627          n/a
    -------------------------------------------------------------------------
    Payout ratio(g,j)                                     151.9%         n/a
    -------------------------------------------------------------------------

    a.  These figures are pro forma.

    b.  Represents the change in non-cash operating items recorded on the
        Fund's unaudited interim consolidated statement of cash flows.

    c.  Represents the difference between income taxes as reported and pro
        forma income tax expense which reflects the current tax attributes of
        the Fund Group under the income trust structure, as presented in the
        "Quarterly Pro Forma Net Income Reconciliation" in the 2006 Annual
        MD&A.

    d.  Maintenance capital expenditures are determined based on the capital
        requirements necessary to sustain current levels of economic
        activity. These expenditures are based on the capital asset
        replacement cycle over the expected service capability of certain
        existing capital assets, including the replacement of furniture and
        fixtures, computer equipment, computer software and leasehold
        improvements. For further discussion, see "Distributable Cash and
        Distributions - Maintenance Capital Expenditures" in the 2006 Annual
        MD&A.

    e.  The net income of the Fund's corporate subsidiaries is not included
        in the determination of distributable cash.

    f.  Future income taxes represent a non-cash item recorded on the Fund's
        unaudited interim consolidated statement of cash flows.

    g.  Distributable cash, distributable cash per unit and payout ratio are
        not recognized measures under GAAP and do not have any standardized
        meanings prescribed by GAAP. Therefore, these measures may not be
        comparable to similar measures presented by other issuers. See
        "Presentation of Financial Information and Non-GAAP Measures" in the
        2006 Annual MD&A.

    h.  Comparative common shares outstanding have been restated to reflect a
        two-for-one exchange of one common share of the Company for two Fund
        units based on the average common shares outstanding for the
        applicable period.

    i.  Distributable cash per unit is determined by dividing distributable
        cash by the weighted-average number of units outstanding for the
        applicable period, on a basis consistent with the determination of
        net income per unit.

    j.  The payout ratio is determined by dividing aggregate cash
        distributions declared by distributable cash.
    

    The Fund's payout ratio was 151.9% in fourth quarter 2006 reflecting a
special cash distribution of $0.50 per unit announced by the Fund on
November 21, 2006 and paid on January 19, 2007 to unitholders of record as of
December 29, 2006. This special cash distribution represented excess
distributable cash arising from the Fund's positive financial performance for
fiscal 2006. The payout ratio in fourth quarter 2006 was 64.8% excluding this
special cash distribution. Cash available for distribution in fourth quarter
2006 was $36.0 million, representing an increase of $18.0 million from pro
forma cash available for distribution in fourth quarter 2005 of $18.0 million.
This increase was primarily due to the strong operating results generated by
the Capital Markets and Wealth Management segments in fourth quarter 2006, the
contribution of the Private Capital Management segment and the shorter
reporting period in fourth quarter 2005.
    For a further discussion on distributable cash and distributions refer to
"Distributable Cash and Distributions" in the 2006 Annual MD&A and "Risk
Factors - Risks Related to the Fund Units - Cash Distributions" in our annual
information form dated February 28, 2007.

    CONFERENCE CALL

    Management will host a conference call and live audio webcast today at
11:00 a.m. (ET) today to discuss the Fund's fourth quarter and fiscal year
ended December 31, 2006. The call may be accessed by dialing 416-644-3414 or
1-800-733-7571. The webcast will be accessible at gmpcapitaltrust.com and will
be archived on the site. A replay of the conference call will be available
from Thursday, March 1, 2007, at 1:00 p.m. (ET) to Thursday March 8, 2007, at
11:59 p.m. (ET). The dial-in number for the replay is 416-640-1917 or
1-877-289-8525; access code 21214676 followed by the number sign.

    OTHER INFORMATION

    This press release should be read in conjunction with the Fund's 2006
Annual Financial Statements and the 2006 Annual MD&A, which can be accessed on
our website at gmpcapitaltrust.com and on SEDAR at sedar.com. Additionally,
the 2006 Annual Financial Statements and the 2006 Annual MD&A will be included
in our 2006 annual report, which we expect to be available at the end of March
2007.

    Meaning of Certain References

    In this press release all references to "fourth quarter 2006" refer to
the three months ended December 31, 2006. All references to "fourth quarter
2005" refer to the two months ended December 31, 2005. All references to
"fiscal 2006" refer to the 12 months ended December 31, 2006. All references
to "fiscal 2005" refer to the 11 months ended December 31, 2005. All
references to the "2006 Annual MD&A" refer to the Fund's management's
discussion and analysis for the year ended December 31, 2006. All references
to the "2006 Annual Financial Statements" refer to the audited annual
consolidated financial statements for fiscal 2006. All references to "we",
"our", "us" and "Fund Group" refer to the Fund, together with its consolidated
operations. All references to "Fund units" refer to trust units of the Fund.
All references to "Exchangeable L.P. units" refer to Class B limited partner
units of Griffiths McBurney L.P. All references to "units" refer collectively
to the Fund units and the Exchangeable L.P. units. All references to the
"EdgeStone Funds" refer to the group of limited partnerships through which
EdgeStone manages the assets of its investors and clients. All references to
"management" refer to the directors, officers and other senior officers of
Griffiths McBurney Canada Corp., the administrator of the Fund. All references
to the "Conversion" refer to the conversion of GMP Capital Corp. (the
"Company") from a corporate entity into the Fund, an income trust, on
December 1, 2005. All references to "GAAP" refer to Canadian generally
accepted accounting principles.

    
                    UNAUDITED CONSOLIDATED BALANCE SHEETS
                                   ($000)
                                                          As at December,
                                                     ------------------------
                                                         2006         2005
                                                          $            $
    -------------------------------------------------------------------------
    ASSETS
    Current
    Cash and cash equivalents                           139,691       57,739
    Trading securities                                   80,106       57,993
    Receivable from
      Clients                                           415,233      432,126
      Brokers                                           153,940       91,524
    Other assets                                         63,063       32,488
    -------------------------------------------------------------------------
    Total current assets                                852,033      671,870
    -------------------------------------------------------------------------
    Deferred costs                                        8,279        2,467
    Capital assets                                       15,775        2,275
    Employee loans receivable                            16,854       10,904
    Future income taxes                                   1,302        2,528
    Goodwill and other intangible assets                139,234            -
    -------------------------------------------------------------------------
                                                      1,033,477      690,044
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND UNITHOLDERS' EQUITY
    Current
    Short-term borrowing                                      -           54
    Obligations related to securities sold short         36,102        3,755
    Payable to
      Clients                                           470,272      334,715
      Brokers                                            15,103       25,065
      Issuers                                            63,006       82,922
    Accounts payable and accrued liabilities             50,413       47,758
    Distributions payable                                39,161        5,974
    Other liabilities                                    28,543       12,089
    -------------------------------------------------------------------------
    Total current liabilities                           702,600      512,332
    -------------------------------------------------------------------------
    Long-term debt                                       60,000            -
    Agency fee obligation                                 3,319            -
    Non-controlling interest                              1,738          198
    -------------------------------------------------------------------------
    Unitholders' equity                                 265,820      177,514
    -------------------------------------------------------------------------
                                                      1,033,477      690,044
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                                  UNAUDITED
                      CONSOLIDATED STATEMENTS OF INCOME
                    ($000, except per unit/share amounts)

                          Three months  Two months   Year ended    11 months
                              ended        ended        ended        ended
                          December 31, December 31, December 31, December 31,
                               2006         2005         2006         2005
                                $            $            $            $
    -------------------------------------------------------------------------
    REVENUE
    Investment banking         55,205       32,160      197,364      156,242
    Commissions                30,478       15,488      116,483       83,248
    Investment management
     and fee income             9,052           10       19,390          104
    Principal activities        3,376        3,196        4,930        6,556
    Interest                    4,775        2,395       18,095        9,662
    Other                         711          (24)       1,050         (140)
    -------------------------------------------------------------------------
                              103,597       53,225      357,312      255,672
    -------------------------------------------------------------------------

    EXPENSES
    Employee compensation
     and benefits              51,551       26,888      173,714      122,035
    Selling, general and
     administrative            10,562        6,161       36,532       26,432
    Interest                    2,249          497        6,825        2,086
    Amortization                4,516          388        9,092        1,468
    -------------------------------------------------------------------------
                               68,878       33,934      226,163      152,021
    -------------------------------------------------------------------------
    Income before the
     undernoted                34,719       19,291      131,149      103,651
    Non-controlling interest       50           33           47           47
    -------------------------------------------------------------------------
    Income before income
     taxes                     34,669       19,258      131,102      103,604
    -------------------------------------------------------------------------
    Income taxes
      Current                   2,907        4,505       10,310       36,791
      Future                    1,201        1,233          828       (1,019)
    -------------------------------------------------------------------------

                                4,108        5,738       11,138       35,772
    -------------------------------------------------------------------------
    Net income                 30,561       13,520      119,964       67,832
    -------------------------------------------------------------------------
    Net income per
     unit/common share
    Basic                  $     0.49   $     0.24   $     2.01   $     1.20
    Diluted                $     0.48   $     0.23   $     1.94   $     1.17
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                              GMP Capital Trust
                                  UNAUDITED
    CONSOLIDATED STATEMENT OF CHANGES IN UNITHOLDERS'/SHAREHOLDERS' EQUITY
                                    (000)

    As at and for the year ended December 31,

                                                              Exchangeable
                         Common shares       Fund units        L.P. units
                         -------------       ----------       ------------
                          No.       $       No.       $       No.       $
    -------------------------------------------------------------------------
    Balance, January 31,
     2005                28,164  122,544        -        -        -        -
    Issued under stock
     option plan            104    2,020        -        -        -
    Issuance of Fund
     units in exchange
     for common shares  (18,262) (80,472)  36,524   80,472        -        -
      and $1 per share        -        -        -  (18,262)       -        -
    Issuance of
     Exchangeable L.P.
     units in exchange  (10,006) (44,092)       -        -   20,012   44,092
      for common shares
       and $1 per share       -        -        -        -        -  (10,006)
    Issued under Fund
     unit option plan         -        -      793    6,667        -        -
    Fund unit/
     stock-based
     compensation
     expense                  -        -        -        -        -        -
    Dividends paid            -        -        -        -        -        -
    Cash distributions
     declared - Fund
     units                    -        -        -        -        -        -
    Cash distributions
     declared -
     Exchangeable L.P.
     units                    -        -        -        -        -        -
    Non-cash
     distributions            -        -        -    2,391        -        -
    Non-cash
     allocations              -        -        -        -        -    1,282
    Net income                -        -        -        -        -        -
    -------------------------------------------------------------------------
    Balance,
     December 31, 2005        -        -   37,317   71,268   20,012   35,368
    Foreign currency
     translation of
     self-sustaining
     operations               -        -        -        -                 -
    Issued under Fund
     unit option plan         -        -    1,309   12,386        -
    Issued as purchase
     consideration in
     business
     acquisition, net
     of issue costs           -        -                      4,019   71,193
    Exchange of
     Exchangeable L.P.
     units into Fund
     units                    -        -    1,791    3,165   (1,791)  (3,165)
    Fund unit/
     stock-based
     compensation
     expense                  -        -        -        -        -
    Cash distributions
     declared - Fund
     units                    -        -        -        -        -
    Cash distributions
     declared -
     Exchangeable L.P.
     units                    -        -        -        -        -
    Net income                -        -        -        -        -
    -------------------------------------------------------------------------
    Balance,
     December 31, 2006                     40,417   86,819   22,240  103,396
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                                                                    Total
                                     Cumulative                 unitholders'/
                      Contributed    Translation    Retained    shareholders'
                         surplus       Account      earnings       equity

                            $             $             $             $
    -------------------------------------------------------------------------
    Balance, January 31,
     2005                    1,505             -        25,131       149,180
    Issued under stock
     option plan              (711)            -             -         1,309
    Issuance of Fund
     units in exchange
     for common shares           -
      and $1 per share           -             -                     (18,262)
    Issuance of
     Exchangeable L.P.
     units in exchange           -             -             -             -
      for common shares
       and $1 per share          -             -             -       (10,006)
    Issued under Fund
     unit option plan       (1,382)            -             -         5,285
    Fund unit/
     stock-based
     compensation
     expense                 2,256             -             -         2,256
    Dividends paid               -             -       (14,106)      (14,106)
    Cash distributions
     declared
     - Fund units                -             -        (3,889)       (3,889)
    Cash distributions
     declared -
     Exchangeable L.P.
     units                       -             -        (2,085)       (2,085)
    Non-cash
     distributions               -             -        (2,391)            -
    Non-cash
     allocations                 -             -        (1,282)            -
    Net income                   -             -        67,832        67,832
    -------------------------------------------------------------------------
    Balance,
     December 31, 2005       1,668             -        69,210       177,514
    Foreign currency
     translation of
     self-sustaining
     operations                               11             -            11
    Issued under Fund
     unit option plan       (2,576)            -             -         9,810
    Issued as purchase
     consideration in
     business
     acquisition, net
     of issue costs              -             -             -        71,193
    Exchange of
     Exchangeable L.P.
     units into Fund
     units                       -             -             -             -
    Fund unit/
     stock-based
     compensation
     expense                 3,557             -                       3,557
    Cash distributions
     declared - Fund
     units                       -             -       (73,966)      (73,966)
    Cash distributions
     declared -
     Exchangeable L.P.
     units                       -             -       (42,263)      (42,263)
    Net income                   -             -       119,964       119,964
    -------------------------------------------------------------------------
    Balance,
     December 31, 2006       2,649            11        72,945       265,820
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                                  UNAUDITED
                     CONSOLIDATED STATEMENTS OF CASH FLOW
                                   ($000)

                          Three months  Two months       Year      11 months
                              ended        ended        ended        ended
                          December 31, December 31, December 31, December 31,
                               2006         2005         2006         2005
                                $            $            $            $
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    Net income                 30,561       13,520      119,964       67,832
    Add (deduct) items not
     involving cash
      Amortization              4,516          388        9,092        1,468
      Amortization of agency
       fees and private
       placement costs            524            -          932            -
      Amortization of lease
       inducement                 (92)           -          (92)           -
      Future income taxes       1,201        1,233          828       (1,019)
      Fund unit/stock-based
       compensation expense       955          448        3,557        2,256
      Transition assistance
       and other loan
       amortization               458          145        1,258          347
      Non-controlling
       interest                    50           33           47           47
    -------------------------------------------------------------------------
                               38,173       15,767      135,586       70,931
    Net change in non-cash
     operating items           26,207       21,682       39,631      (85,405)
    -------------------------------------------------------------------------
    Cash provided by
     (used in) operations      64,380       37,449      175,217      (14,474)
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
    Proceeds from issuance
     of long-term debt         60,000            -       60,000            -
    Proceeds from
     subordinated loan        (20,000)           -            -            -
    Proceeds from issuance
     of common shares               -          445            -        1,309
    Proceeds from issuance
     of Fund units              6,030        5,285        9,810        5,285
    Repayment of
     short-term borrowing           -           54          (54)      (1,068)
    Special cash
     distributions paid on
     Fund units                     -      (18,262)           -      (18,262)
    Special cash
     distributions paid on
     Exchangeable L.P.
     units                          -      (10,006)           -      (10,006)
    Cash distributions
     paid on Fund units       (14,603)           -      (52,597)           -
    Cash distributions
     paid on
     Exchangeable L.P.
     units                     (8,594)           -      (30,447)           -
    Dividends paid on
     common shares                          (1,412)           -      (14,106)
    Increase in
     non-controlling
     interest                   1,519            3        1,493           16
    -------------------------------------------------------------------------
    Cash used in financing
     activities                24,352      (23,893)     (11,795)     (36,832)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Business acquisition          (78)           -      (66,883)           -
    Pre-operating
     expenditures                (920)           -         (920)        (926)
    Purchase of capital
     assets                    (3,078)        (516)     (13,667)      (1,130)
    -------------------------------------------------------------------------
    Cash used in investing
     activities                (4,076)        (516)     (81,470)      (2,056)
    -------------------------------------------------------------------------
    Net increase (decrease)
     in cash and cash
     equivalents               84,656       13,040       81,952      (53,362)
    Cash and cash
     equivalents,
     beginning of period       55,035       44,699       57,739      111,101
    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of period            139,691       57,739      139,691       57,739
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplemental cash
     flow information
    Interest paid               1,842          216        6,238        2,086
    Income taxes paid           4,201        2,837       25,329       33,544
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    



    ABOUT GMP CAPITAL TRUST
    GMP Capital Trust carries on business through the following entities: GMP
Securities L.P. ("GMP Securities"), Griffiths McBurney Corp., GMP Securities
Europe LLP ("GMP Europe"), GMP Private Client L.P. and EdgeStone Capital
Partners, L.P. ("EdgeStone"). GMP Securities is a leading independent Canadian
investment dealer focused on investment banking and institutional equities for
corporate clients and institutional investors. GMP Securities can be found on
the web at gmpsecurities.com. Griffiths McBurney Corp. services institutional
clients in the United States while GMP Europe provides investment banking and
institutional equity services to clients located in Europe. GMP Private Client
is a full-service investment firm focused on high-net-worth private investors
that provides wealth preservation, income and growth strategies delivered by
seasoned investment advisors. GMP Private Client can be found on the web at
gmpprivateclient.com. EdgeStone is one of Canada's leading private equity
firms, providing capital, strategic direction and business and financial
advice to help promising mid-market and early stage companies achieve their
full potential. EdgeStone can be found on the web at edgestone.com. GMP
Capital Trust is listed on the Toronto Stock Exchange under the symbol GMP.UN.
The website is gmpcapitaltrust.com. GMP Capital Trust has offices in Toronto,
Calgary, Montreal, Vancouver, Geneva, Switzerland and London, England.

    Forward-Looking Statements
    This press release may contain "forward-looking statements" (as defined
under applicable securities laws) concerning anticipated future events,
results, circumstances, performance or expectations that are not historical
facts but instead represent our beliefs, expectations, estimates and
projections regarding future events, many of which, by their nature, are
inherently uncertain and beyond our control. These statements are not
guarantees of future performance and are subject to numerous risks and
uncertainties, including those described in the Fund's regulatory filings,
which are available on our website at gmpcapitaltrust.com and on SEDAR at
sedar.com. The Fund Group's primary business activities, by their nature, are
both competitive and subject to various risks. These risks include market,
credit, liquidity, operational and regulatory risks and other risk factors
including, without limitation, variations in the 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 also may have an impact on the Fund Group'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. Except as
required by applicable law, we undertake no obligation to publicly update or
revise any forward-looking statement, whether as a result of new information,
future events or otherwise.

    Non-GAAP Measures
    Certain financial terms included in this press release (e.g.,
"distributable cash" and "payout ratio") are not recognized measures under
Canadian generally accepted accounting principles (GAAP) and do not have any
standardized meanings prescribed by GAAP. Therefore, readers are cautioned
that these measures may not be comparable to similar measures presented by
other issuers. For a more comprehensive discussion on the Fund's use of
non-GAAP measures, please see the "Presentation of Financial Information and
Non-GAAP Measures" section of the 2006 Annual MD&A accompanying this press
release, which is also available on our website at gmpcapitaltrust.com and on
SEDAR at sedar.com.





For further information:

For further information: GMP Capital Trust, Investor Relations, 145 King
Street West, Suite 300, Toronto, Ontario, M5H 1J8, Tel: (416) 367-8600; Fax:
(416) 941-0839, investorrelations@gmpcapitaltrust.com


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