Ninepoint Partners, a Toronto-based alternative asset manager, has acquired LOGiQ Global Partners, the institutional advisory business of Flow Capital Corp., the companies announced on Monday.
Under the transaction, which closed April 12, Ninepoint purchased Flow Capital's LOGiQ Global Partners for a total consideration of C$12.4 million ($9.3 million).
The deal includes a C$1.4 million cash payment, a note in the principal amount of C$9.5 million bearing interest at an annual rate of 10%, and a note in the principal amount of C$1.5 million bearing interest at an annual rate of 10%, a news release from Flow Capital states.
Ninepoint, which had C$2.5 billion in primarily mutual fund assets as of Dec. 31, moves into the institutional advisory business, adding a small team of investment consultants from LOGiQ Global Partners and C$3.5 billion in long-term advisory contracts with institutional investors, or assets under advisement, a spokesman for Ninepoint said.
"This is a great strategic fit for our firm," James Fox, co-CEO and managing partner of Ninepoint Partners, said in the news release. "We have a shared vision … which is to help asset allocators improve their portfolios by adding alternative investment strategies and/or investment managers with a sustainable competitive advantage."
Ninepoint offers alternative core, alternative income and real assets strategies and is a subsidiary of Ninepoint Financial Group.