CI makes huge acquisition

CI makes huge acquisition

CI makes huge acquisition CI Financial Corp. announced today that it has reached an agreement to acquire 100% ownership of First Asset Capital Corp.

"We are pleased to welcome First Asset to the CI Financial group of companies," said Stephen A. MacPhail, President and Chief Executive Officer of CI Financial. "With First Asset, we broaden and diversify our lineup of operating businesses and gain a successful firm with a proven management team and high growth potential."

First Asset, which operates through its subsidiary First Asset Investment Management Inc., is a Toronto-based, privately owned investment firm with approximately $3 billion in assets under management. The company is a leader in providing actively managed and factor-based ETFs to the Canadian marketplace, and it also offers a suite of mutual funds and closed-end funds.

The transaction, which is subject to regulatory approval, is expected to close by December 31, 2015. Terms were not disclosed. INFOR Financial Group acted as financial advisor to First Asset on this transaction.

"This transaction strengthens First Asset's ability to grow and to expand its product lineup," said Barry H. Gordon, First Asset's President and Chief Executive Officer. "CI Financial provides us with the backing of a financially strong parent company, with significant capabilities in active investment management, as well as extensive resources in operations, administration and technology." 

Following the closing of the transaction, First Asset will continue to operate as a separate business under its current name and under the direction of Mr. Gordon and the First Asset management team, who have made a long-term commitment to the company. First Asset will continue to market and service its own products. 

"We are excited about the growth potential of actively managed ETFs and we will be working with First Asset to build on its leadership in this sector," said MacPhail. "In addition, First Asset provides CI Financial with a future distribution platform for its actively managed investment products, including access to an ETF platform." 
  • E. Francis Pinto 2015-10-24 11:14:21 AM
    Fantastic! It's about time!
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  • Mark Matsumoto 2015-10-25 10:46:39 PM
    I feel something is very wrong. I feel that compliance is killing competition which will harm many if not most investors. I believe that lack of competition in any market place is bad for the consumer. Compliance costs are altering the business models so that even mid sized firms cannot swallow the cost of compliance.

    It seems that "very huge" is the only business model that can work with current compliance rules.

    Someone has to stand back and look at the overall objectives of compliance. I don't think that the objective of compliance was to kill competition in the market and turn it into an oligopoly, but this is what is happening!
    Turning a perfect competition model to an oligopoly is bad for the consumers and good for the surviving companies. I don't think that this is how regulations are being sold to everyone. This can't be the objective of the regulators.

    Who are the regulators? Who sits on their boards? Where do they come from? What is their day job? How much influence do the banks and the super huge companies have over the regulators?

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