Starlight Capital inks deal to acquire Stone Investment Group

Transaction expected to 'generate significant scale economies,' bring Starlight’s AUM to more than $1 billion

Starlight Capital inks deal to acquire Stone Investment Group

Starlight Investments Capital and Stone Investment Group have entered into an arrangement agreement under which Starlight will acquire Stone via a series of transactions through a wholly owned subsidiary.

Starlight Investments Capital has agreed to buy Stone Investment Group, an independent wealth management firm, for an undisclosed sum. The acquired firm provides investment management services to Canadian investors through its Stone Asset Management (SAM) subsidiary.

Starlight Investments Capital's assets under management (AUM) are likely to increase by more than $1 billion as a result of the deal, which was completed on April 7, 2022.

“We are excited to welcome Stone, its clients and investment professionals to our growing asset management platform at Starlight Capital. Stone has a long history of generating strong risk-adjusted returns for its clients, and we look forward to continuing that success with a shared vision of developing a leading independent investment manager, focused on helping Canadian investors realize their financial goals,” Dennis Mitchell, Chief Executive Officer and Chief Investment Officer of Starlight Capital explained.  “We look forward to working with Richard Stone and his team to continue to provide exemplary investment management services for our collective clients.”

The Board considered, among other things, an opinion from WD Capital Markets Inc. that the consideration per Common Share to be received by Shareholders is reasonable from a financial standpoint in making its unanimous determination and recommendation.

The purchase has received unanimous approval from the Stone board of directors, as well as backing from shareholders who own more than 65 percent of the company's ordinary stock.

Stone president and CEO Richard Stone commented: “Stone and Starlight products are very complementary and combining these two businesses will generate significant scale economies that will benefit both investors and advisors.

“Starlight Capital has the people, infrastructure and balance sheet resources necessary to ensure that investors in the Stone funds will continue to enjoy best-in-class stewardship over their capital, and we are excited to join the Starlight Capital team.”

Starlight Capital is a wholly owned subsidiary of privately held Starlight Investments, a real estate investment and asset management firm.

On behalf of institutional joint ventures, publicly traded REITs, closed-end funds, and investment funds, the organization manages over $25 billion in assets. It has more than 300 employees.