Integrated Asset Management Corp. Announces the Sale of BluMont Capital Corporation to Arrow Capital |
Date: Thursday, September 19, 2013
Author: Press Release
Integrated Asset Management Corp. ("IAM") (TSX:IAM) and Arrow Capital Management Inc. ("Arrow") today announced that they have entered into a mutual agreement for IAM to sell its wholly-owned subsidiary, BluMont Capital Corporation ("BluMont"), to Arrow.
Closing of the transaction is subject to, among other things, receipt of all necessary approvals of applicable securities regulatory authorities. Pending approvals, the parties expect the transaction to close in the last calendar quarter of 2013.
The proposed sale of BluMont to Arrow will allow IAM to focus exclusively on its growing institutional business, which comprises approximately 85% of IAM’s current assets under management ("AUM"), while complementing Arrow’s existing lineup of investment solutions to both Canadian and international clients. IAM intends to build on its core asset
classes of real estate and private corporate debt with new products and new asset classes.
"Despite the exceptional investment track record of all BluMont funds, and in particular those funds managed by Veronika Hirsch and Alex Ruus, the challenging retail environment led us to the decision to combine BluMont with a larger high quality alternative asset company; particularly one with whom we can have a relationship going forward with other products" said Victor Koloshuk, the Chairman and CEO of IAM.
"Bringing BluMont’s stable of funds and pedigree of portfolio managers into the Arrow family greatly enhances Arrow’s mandate of providing unique, actively managed investment solutions to a wide array of investors," said Arrow CEO James McGovern. "BluMont’s roster of investment funds is a natural extension of Arrow’s current product lineup."
BluMont is IAM’s retail alternative asset management subsidiary and provides mutual funds and other product solutions to retail investors primarily through the Exemplar Portfolio of funds. BluMont’s AUM were approximately $260 million as at August 31, 2013. All of the portfolio managers and advisors, including Veronika Hirsch, Alex Ruus, Capital Innovations, LLC and Integrated Managed Futures Corp., will continue to provide services to their respective funds.
Said Mr. McGovern: "Arrow is particularly happy to welcome both Ms. Hirsch and Mr. Ruus to the Arrow family and is looking forward to offering their expertise to investors across the country".
"The Exemplar Portfolio of funds produced excellent returns to investors since the launch in 2008. With Arrow’s support and expertise, more investors will become aware of these attractive funds," said James Wanstall, BluMont’s CEO.
Founded in 1999, Arrow is an employee-owned company focused on alternative asset management and manager selection. Its strong, diverse platform provides access to a global selection of outstanding investment funds across a range of asset classes, strategies and both single- and multi-manager portfolios.
Upon closing, Arrow will have approximately $1.3 billion in assets under management, including its joint venture with Generation Asset Management based in London, England.
IAM is one of Canada’s leading alternative asset management companies, with approximately $1.9 billion in assets and committed capital under management in private corporate debt, real estate, managed futures, private equity and retail alternative investments.
Origin Merchant Partners acted as exclusive financial advisor to IAM with respect to this transaction.
For further information, contact:
Stephen Johnson, Chief Financial Officer, Integrated Asset Management Corp. T: 416-933-8278 sjohnson@iamgroup.ca
or
JamesMcGovern Managing Director and CEO Arrow Capital Management Inc. T: 416-323-0477 jmcgovern@arrow-capital.com
Reproduction in whole or in part without permission is prohibited.