Senior leaders have cemented their control of the Canadian asset manager
The senior management of one of Canada’s leading international asset managers will have greater control following a deal to acquire a $53 million stake from a minority investor.
The leaders and several board members, under the entity 16121136 Canada Inc., have acquired all shares of Fiera Capital L.P. and Fiera Holdings Inc. that were previously held by Desjardins Financial Holding Inc. at a price equivalent to $7.25 per Purchased Security, partly financed ($20 million) by a Canadian bank and backed by Fiera.
Desjardins announced its decision to sell its 6.8% stake in April which rattled markets at the time due to the potential for Fiera’s management, led by chairman and global CEO Jean-Guy Desjardins, to lose their special voting rights that give them the right to decide on two thirds of the firm’s board. That could have left them open to activist investors. However, their acquisition of the Desjardins stake maintains – and solidifies – their control of Fiera.
"Desjardins has been a supportive and valued partner since our inception, backing us over the last two decades," said Jean-Guy Desjardins. "Despite the repurchase of shares, Desjardins continues to be a valued client, and we look back with satisfaction on our successful partnership."
President and CEO of Fiera Canada and Global Private Wealth of Fiera Capital, Maxime Ménard, who is one of eleven executives and directors behind the acquisition, said last month that the management team was looking to acquire the Desjardins stake.
“It came at a point where we've had mutual conversations where management is looking for an opportunity to put together an ability to buy the block. This is a fairly illiquid position, so having a block available for management to buy in, is something I strongly believe in,” Ménard told WP in May. “I think having additional people buying into the stock is going to create lots of positives.”
Business partners
Guy Cormier, president and CEO of Desjardins Group, said that the transaction - which was scrutinized and unanimously approved by a committee of independent Fiera board members - is in line with his firm’s investment strategy.
“Fiera Capital remains an important business partner for Desjardins. We will continue our business relationship with Fiera, particularly in the management of our trust funds," he said.
