TLDR:
- AGF is set to acquire a majority stake in Kensington Capital Partners to expand its private markets business.
- Kensington is an alternative investment firm based in Toronto with C$2.6 billion in assets under management.
AGF Management Limited, a Canadian investment management firm, has announced plans to acquire a majority stake in Kensington Capital Partners. The deal, which is subject to regulatory approval, will bolster AGF’s private markets business. AGF will acquire a 70% stake in Kensington, with the ability to increase its ownership to 100% over time.
Kensington is an alternative investment firm based in Toronto and currently manages approximately C$2.6 billion in assets. The firm specializes in private equity, infrastructure, and real estate investments. AGF sees the acquisition as a strategic move to enhance its private markets capabilities and provide clients with a wider range of investment opportunities.
“The acquisition of Kensington is a key component of AGF’s growth strategy,” said Kevin McCreadie, CEO and CIO of AGF. “Their capabilities and experience will enhance our private markets platform as we continue to build a leading alternative investment business in Canada.”
AGF aims to capitalize on the growing demand for alternative investments and expand its presence in the private markets sector. Private equity and other alternative asset classes have become increasingly attractive to investors seeking higher returns and portfolio diversification. AGF believes that by adding Kensington’s expertise to its existing capabilities, it can offer clients a more comprehensive suite of investment solutions.
The acquisition also aligns with AGF’s focus on sustainable investing. Kensington has a track record of investing in companies that promote environmental, social, and governance (ESG) principles. AGF views ESG integration as a key driver of long-term value and believes that incorporating ESG considerations into investment decisions can lead to better risk-adjusted returns.
AGF plans to retain the Kensington team and maintain its partnership-driven approach to investing. The merger is expected to create synergies and enhance the combined firm’s ability to source and execute investment opportunities. The transaction is expected to close in early 2023.
In summary, AGF’s acquisition of Kensington Capital Partners will allow the firm to expand its private markets business and offer clients a broader range of alternative investment opportunities. The deal aligns with AGF’s growth strategy and focus on sustainable investing, as well as capitalizes on the increasing demand for alternative asset classes.
