TORONTO, ONTARIO--(Marketwired - Oct. 9, 2015) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES
Front Street Capital 2004 ("Front Street Capital") today announced an agreement under which a group of strategic investors will acquire a controlling ownership interest in Front Street Capital. Under the agreement, FS Group Holdings Ltd., a new company formed by the investor group (the "Investor Group") will acquire certain partnership interests of Front Street Capital, a leading Canadian asset manager. The transaction is expected to close prior to December 31, 2015, subject to approval of Canadian securities regulatory authorities. The terms of the agreement were not disclosed.
"We are excited to make this investment, and partner with one of the most dynamic and talented management teams in the Canadian asset management industry," said Gordon McMillan, one of the principals of the Investor Group. "We intend to build upon Front Street Capital's successful Canadian mutual fund and hedge fund platform and to leverage the depth of its highly regarded portfolio management team," Mr. McMillan said.
"Front Street Capital is pleased to welcome this new group as partners," said Gary Selke, Chief Executive Officer of Front Street Capital. "We are confident that with the significant experience and additional resources they provide, we can take Front Street Capital further towards its goal of being one of Canada's leading asset managers. We now have additional resources to continue our growth strategy and to develop innovative products and investment solutions in this dynamic market."
All of the individual portfolio managers at Front Street Capital are expected to remain following completion of the transactions and will all remain actively involved in the portfolio management functions at the firm. There are no anticipated changes to the current services provided to clients of the firm, including to the Jemekk group of funds, as a result of the transaction. "This is a very positive development for the firm, as a broader ownership base is an investment in the firm's future and provides not only a path for sustainable growth, but also significant opportunities for the firm's key assets-our employees," said Frank Mersch, Chief Investment Officer of Front Street Capital.
About Front Street Capital
Privately held and independent, Toronto-based Front Street Capital has been serving Canadian advisors and investors for over a decade. We offer a diverse range of investments, including growth, income and tax-minded portfolios offered as mutual funds, hedge funds, and flow-through limited partnerships. Our independent-thinking and experienced portfolio managers have demonstrated long-term success in assessing global macroeconomic and structural themes driving the markets.
The information contained in this release may include "forward-looking statements", which are generally expressed in the future tense, or using words such as "expect", "anticipate", "believe" or "may", whether or not they are expressly identified as forward-looking statements. Any such statements pertaining to our investment products or services were based on assumptions that we believed to be reasonable at the time, but which may prove to be incorrect. As a result, any forward-looking statements may prove to be incorrect and actual performance or results may differ materially from that predicted in any forward-looking statements.
Source: Marketwired - All
Link: Front Street Capital Announces New Strategic Investors