CI Financial to buy stake in Lawrence Park Capital Partners
14 Feb, 2012, 11:34 ET
TSX Symbol: CIX
TORONTO, Feb. 14, 2012 /CNW/ - CI Financial Corp. ("CI") today announced that it has reached an agreement to acquire a significant minority interest in Lawrence Park Capital Partners Ltd. ("LP Capital Partners"), an alternative asset manager focusing on fixed-income and credit strategies.
CI will also make a significant investment in LP Capital Partners' inaugural fund, Lawrence Park Credit Strategies Fund, which will be launched in March 2012. In addition, CI will provide administrative services to the fund and assist LP Capital Partners in developing and executing a growth strategy.
LP Capital Partners is a Toronto-based investment management firm founded in 2011 by David Fry, Chief Executive Officer, and Andrew Torres, Chief Investment Officer. The team members, which include partners Peter Metcalfe and John Young, have over 60 years of combined experience in trading fixed-income and credit-related products and in managing trading teams.
"We are pleased to partner with one of Canada's largest and most successful asset managers, with a prominent and trusted brand and industry-leading expertise in portfolio management, administration and client service," said Mr. Fry. "This partnership will accelerate our growth plans and vastly expand the expertise and service backing our firm and the fund."
"In Lawrence Park, we have identified an exceptional opportunity for growth and a firm that can benefit from CI's support," said Stephen A. MacPhail, CI President and Chief Executive Officer. "The portfolio managers, led by David Fry and Andrew Torres, have used their talent and extensive experience in the income markets to develop a credit-focused fund that is unique in the Canadian marketplace."
The relationship is part of a strategy of seeking selected growth opportunities in the alternative asset management space, Mr. MacPhail said. "CI is always seeking to partner with superior portfolio managers across our business, and alternative investing, with its specialized and distinct strategies, is becoming increasingly attractive."
CI also owns a significant interest in Red Sky Capital Management Ltd., an alternative investment manager led by Timothy Lazaris that has posted strong absolute and relative returns since inception in September 2010.
Lawrence Park Credit Strategies Fund is available to accredited investors only. More information about LP Capital Partners is available at www.lpcapitalpartners.com. CI's purchase of an ownership stake in LP Capital Partners is subject to receipt of securities regulatory approval.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company with approximately $93.2 billion in assets as of January 31, 2012. CI offers a broad range of investment products and services, including an industry-leading selection of investment funds, and is on the Web at www.ci.com/cix.
This press release contains forward-looking statements with respect to CI and its products and services, including its business operations and strategy and financial performance and condition. Although management believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, including interest rates, business competition, changes in government regulations or in tax laws, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time.
For further information:
Stephen A. MacPhail
President and Chief Executive Officer
CI Financial Corp.
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