AGF Private Capital, the private markets business of AGF Management, has signed a definitive agreement to acquire a 51% stake in Canadian alternative asset manager Kensington Capital Partners for C$45 million ($34 million).
The addition of Kensington's expertise in private equity will add to AGF Private Capital's existing private credit strategy and alternatives capabilities, expanding its channels of growth, said a Jan. 15 news release.
The transaction is expected to close in the second quarter of 2024, subject to regulatory approvals and closing conditions.
As a part of AGF, Kensington will receive "strategic support while retaining its investment and operational independence," the release noted.
Also, as part of the transaction, a spokesperson for AGF said that Ash Lawrence, head of AGF Private Capital; Judy Golding, president and head of global distribution at AGF Management; and Ken Tsang, chief financial officer at AGF Management, will join Kensington's three senior managing directors on Kensington's board of directors, with Lawrence becoming its chairman.
AGF Management had C$42.8 billion in assets under management as of Dec. 31. As of that date, AGF Private Capital's AUM and fee-earning assets totaled C$2.1 billion, according to a news release issued on Jan. 4.
Kensington has C$2.8 billion in assets under management, according to the firm's website.