TORONTO, May 1, 2013 /CNW/ - GMP Capital Inc. (GMP) (TSX: GMP) today announced that GMP Investment Management L.P. (GMP IM) has completed the transaction to sell certain advisory contracts and assets under management to Fiera Capital Corporation (Fiera) for cash proceeds of $10.8 million. This transaction was initially announced on January 18, 2013.
As previously disclosed, GMP will also be entitled to receive 25 percent of performance fees earned in connection with the advisory contract and assets acquired by Fiera for a period of three years, subject to certain exceptions and minimum retained assets under management conditions.
This transaction presented GMP with the opportunity to monetize a major portion of its asset management business and strategically reposition the business and align its mandate to complement the franchise-building efforts of its partners at Richardson GMP Limited. GMP IM intends to rebrand as CQI Capital Management LP later this year under the leadership of Chief Executive Officer, Dan McClure. GMP IM's existing portfolio management team comprised of industry professionals with extensive experience and a proven track record of performance will continue to manage the GMPIM Equities Opportunities Fund and the Genesis Partners Fund LP. The business expects to launch new fund offerings later this year as market conditions warrant. "We are confident that Dan and his team will provide the necessary leadership required to grow this business going forward," said Harris Fricker, Chief Executive Officer and President, GMP. "Investors in the GMPIM Equity Fund and the Genesis Fund will continue to benefit from the same management team that is currently overseeing their assets."
ABOUT GMP CAPITAL INC.
GMP Capital Inc. (GMP) is a leading independent diversified financial services firm headquartered in Toronto, Canada, providing a wide range of financial products and services to a global client base that includes corporate clients, institutional investors and high-net-worth individuals in two integrated reporting segments. The Capital Markets segment provides investment banking, including advisory and underwriting services, institutional sales and trading and research through offices located in Toronto, Montreal, Calgary, New York, Miami, Dallas, London, Perth and Sydney. The Capital Markets segment conducts its business through the following operating entities: GMP Securities L.P., GMP Securities, LLC, Griffiths McBurney Corp., GMP Securities Europe LLP and GMP Securities Australia Pty Limited. Wealth Management consists of GMP's non-controlling ownership interest in Richardson GMP Limited and the investment management and alternative investment products provided by GMP Investment Management L.P. Richardson GMP Limited is a full-service independent firm focused on providing exclusive and comprehensive wealth management and investment services delivered by an experienced team of investment professionals. GMP is listed on the Toronto Stock Exchange under the symbol "GMP". For further information, please visit our corporate website at gmpcapital.com.
SOURCE: GMP Capital Inc.
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