Asset manager set to acquire majority of $2.6 billion alts firm

Alts firm has 27 year history and will maintain operational independence under new structure

Asset manager set to acquire majority of $2.6 billion alts firm

AGF Private Capital has announced it will acquire a majority interest in Kensington Capital Partners Limited — a Canadian alternative investment firm — as part of a wider push by AGF to grow its private markets business. AGF’s investment will be $45 million for 51% ownership of Kensington.

Kensington has $2.6 billion in AUM, a 27-year history, and a 40-member team. They have historically managed private equity investments across mid-market buyout & growth strategies and venture capital.

As part of the deal, Kensington will retain investment and operational independence as part of AGF. The firm will receive “significant strategic support” from AGF, according to a press release announcing the deal. Kensington’s three senior managing directors Tom Kennedy, Richard Nathan and Eamonn McConnell will continue in their roles. Those three managing directors, as well as other Kensington employees, will retain 49% ownership of the alts firm.

“We are very excited to partner with Kensington as we further build out our diversified private markets business,” said Ash Lawrence, Head of AGF Private Capital. “Kensington is a well-positioned private equity investment firm with an established brand and proven track record of performance. They have strong relationships that fit well within AGF's target channels and have built a growth-oriented business that mirrors AGF’s goal of accelerating the growth of our private markets business.”

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Kensington offers a variety of strategies, including fund of funds, co-investments, and direct investing aimed at providing a wide array of exposures to private markets. Kensington also launched Canada’s first open-ended private equity fund over a decade ago.

The announcement press release also stated that AGF Private Capital is aiming to continue to grow its presence in the private markets space. It states that the expansion of AGF’s private markets business should contribute to earnings growth. The acquisition of Kensington expands AGF Private Capital’s fee-earning assets to $4.6 billion.

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“AGF Private Capital’s strategy is the ideal catalyst for Kensington's further growth as we look to open doors to new strategies, relationships and regions,” said Tom Kennedy, Chairman and Senior Managing Director, Kensington. “AGF‘s size, scale, reputation and capital to invest in our growth lends the credibility and backing we need as we look to expand our investments, including the launch of additional innovative investment products.”