LOGiQ Asset Management has agreed to sell all its retail asset-management contracts, as well as those owned by its affiliates, to Purpose Investments.
“The retail funds industry is experiencing massive change and ongoing consolidation,” said LOGiQ President and CEO Joe Canavan. “We believe that as scale becomes critical for retail fund managers, the benefits of a larger platform such as Purpose's will translate into significant benefits for fund investors.”
The transaction is priced at $32.9 million, but it may be adjusted depending on the price of the assets managed under the funds involved once the deal closes.
According to Canavan, the resulting improvement in liquidity will let the firm focus on growing in areas outside the retail funds sector. This includes LOGiQ’s institutional global sales business under Steven Mantle, head of global partners, and its private-client business managed by Senior Portfolio Manager Barry Morrison.
“We are excited to acquire these high-quality, well-managed investment funds from LOGiQ,” said Purpose President and CEO Som Seif
. “Over the next several months, we will work hard to better align the products through strategy enhancements and lower overall fees, with Purpose's overall goals to provide accessible, intelligent solutions that help Canadians drive better portfolio outcomes.”
The transaction is expected to close by the end of December, pending a number of conditions that include approval from security-holders of the funds involved, investors with interests in LOGiQ, securities regulators, and concerned stock exchanges.
According to the firm, FS Group Holdings, which owns 28% of LOGiQ common shares, has entered into a voting agreement to, among other things, support the transaction.
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