TORONTO, July 15, 2013 /CNW/ - Connor Clark & Lunn Financial Group Ltd. (CC&L Financial Group) today announced that it has entered into an agreement to sell its structured products business Connor Clark & Lunn Capital Markets Inc. (CC&L Capital Markets or the Company) to Aston Hill Financial Inc. (Aston Hill) for cash proceeds that imply a total value for the Company of $20.5 million.
Completion of the sale is expected to occur on or about August 15, 2013 subject to certain regulatory approvals. On closing CC&L Capital Markets will be renamed Aston Hill Capital Markets Inc. The terms of the transaction involve Aston Hill purchasing 80% of the Company from CC&L Financial Group, Neil Murdoch (President and CEO) and Darren Cabral (CFO). Following the transaction, Neil Murdoch and Darren Cabral will hold the remaining 20% of the Company not owned by Aston Hill.
The business being acquired by Aston Hill includes management or advisory agreements related to 14 TSX listed closed end investment products with an aggregate market value of $1.25 billion. Excluded from the sale is the CC&L Core Income and Growth Fund (approximately $90 million in assets), management of which will be assigned to Connor, Clark & Lunn Funds Inc., an affiliate within the CC&L Financial Group, effective immediately prior to closing.
"Aston Hill has made a significant investment in the development of its retail business which includes a presence in both open ended and closed end investment products" said Warren Stoddart, Managing Partner and Co-CEO CC&L Financial Group. "We believe the interests of CC&L Capital Markets' clients will be well supported by the continuity of the management team and the depth of Aston Hill's resources that are available to the business. We would like to thank Neil and Darren for being good partners with us in this business over the years."
Neil Murdoch said "while we are proud to have been part of CC&L Financial Group, Darren and I are excited to be joining Aston Hill. Our business has grown significantly in recent years and we believe it will be beneficial for clients to gain access to the retail oriented resources of Aston Hill. We believe Aston Hill is a great fit for us and look forward to working with their talented professionals."
CC&L Financial Group has no intention to dispose of any other business interests.
CC&L Financial Group's decision to sell its interest in this business, representing less than 3% of its business-wide assets under management, recognizes that the investment management sub-advisory function for most of CC&L Capital Markets' products is performed by investment teams that are not affiliated with CC&L Financial Group. CC&L Financial Group will focus on the development and distribution of in-house managed products and will redeploy the proceeds from this transaction in support of its private markets business consisting of commercial real estate, private equity and infrastructure and renewable energy.
About Connor, Clark & Lunn Financial Group
Connor, Clark & Lunn Financial Group is a multi-boutique asset management company that provides a broad range of investment products and services to institutional, high net-worth and retail investors. With offices in Vancouver, Edmonton, Calgary, Regina, Toronto, Ottawa, Montreal and London (England) and New York, CC&L Financial Group and its affiliate companies are collectively responsible for the management of over $45 billion in assets.
SOURCE: Connor, Clark & Lunn Financial Group
For further information:
Warren Stoddart, Co-CEO and Managing Partner
Connor, Clark & Lunn Financial Group
Greig McKenzie, Head of Marketing
Connor, Clark & Lunn Financial Group