Purpose Investments announced Monday it acquired Toronto-based Redwood Asset Management.
Terms of the deal are not being disclosed. The transaction is expected to close in September and is pending customary regulatory approvals, said a Purpose spokesman in an e-mail.
Following the transaction, Redwood, which has $320 million in assets under management across equity, fixed income and balanced strategies, will continue to operate as separate entity; its brand and management team, lead by Peter Shipper, Redwood president and CEO, will remain intact.
“Purpose's expertise in quantitative investing, alternatives and exchange-traded funds with Redwood's flexible solutions will be combined to offer clients a robust selection of quantitative and actively managed funds for their portfolios,” a news release said.
Toronto-based Purpose has more than $2 billion in assets under management. Currently, no changes are planned for the firms’ subadvisers, the release noted.
"At Purpose, we believe in the value of combining both active and passive investment strategies into well-diversified portfolio solutions. Adding Redwood's business into Purpose's aligns with our long-term goal to be the leading independent investment management firm in Canada," said Som Seif, CEO at Purpose Investments, in the release. "Bringing in a high quality active management component to our full-set of investment product and service offerings has always been part of our plan. With Redwood now part of the team, going forward you can expect us to expand our existing investment offerings and in the process create deeper and stronger relationships."