Canadian money managers Aston Hill Financial and Front Street Capital entered into a merger agreement, creating a company with a combined C$3.1 billion ($2.4 billion) in assets under management, said Nevin Markwart, president and CEO of Front Street Capital.
Terms of the deal, which is expected to close before the end of 2016, were not disclosed. Front Street partners will own 46% and Aston Hill shareholders will own 41% of the combined company, the name of which is to be determined, Mr. Markwart said. The remaining 13% will consist of about 33.7 million common shares owned by current holders of debentures.
Front Street Capital offers hedge fund, mutual fund and limited partnership “growth, income and tax-minded portfolios” and Aston Hill is a multiasset-class money manager.
When the transaction is completed, the combined company will be led by new CEO Joe Canavan, a former chairman and CEO of Assante Wealth Management. James Werry, current interim CEO of Aston Hill, will be stepping down.
