Deal expected to consolidate Montreal’s asset management market, boost financial group’s institutional investment capabilities
Desjardins Group is poised to bolster its global and emerging-market investment capability with the acquisition of a Montreal-based company.
With $5 billion in AUM, Hexavest has a team of 30 employees with a specialization in global equity investment strategies, including in emerging markets. Its clientele of roughly 50 clients consists mostly of institutional investors in Canada, the U.S., Australia, and Asia.
“I'm very proud to welcome the Hexavest team to Desjardins,” said Guy Cormier, president and CEO of the financial cooperative. “This acquisition is an opportunity for us to leverage our shared client-centric values to enhance our services to institutional clients.
The transaction also represents an opportunity for Desjardins to meet a broader set of client needs, contribute more to the well-being of people and the community, and consolidate Montreal’s position as an asset-management hub, Cormier added.
Acquiring Hexavest’s assets would also align with the pan-Canadian growth plan of Desjardins Global Asset Management (DGAM), which targets $100 billion in AUM by 2024.
“We expect Hexavest's specialists to join Desjardins in the beginning of September, strengthening DGAM's expertise in the fundamental and quantitative management of global equity and emerging market investments,” said DGAM President and COO Nicolas Richard.
“I'm very happy to see the Hexavest team join Desjardins Group,” said Hexavest President and co-founder Marc Christopher Lavoie. “We already feel like we're part of the family. Indeed, Desjardins is not only a solid organization but its values are also shared by our professionals.”
The acquisition is expected to be completed around September 1, subject to the typical approvals and conditions.
