AGF Management has made a strategic investment in alternative investment manager New Holland Capital, a New-York based multistrategy investment manager with more than $5 billion in assets under management.
The investment marks a "significant step" in AGF's strategy to continue growing its diversified alternatives business, AGF Capital Partners, with capabilities across both private assets and alternative strategies, said a news release Feb. 12.
Under the terms of the transaction, AGF made an initial strategic investment in the form of a note convertible into a 24.99% economic interest in New Holland. AGF also has the option to subsequently increase its ownership stake.
Further financial details of the transaction were not disclosed.
New Holland will retain operational independence and the firm's existing leadership team, led by Scott Radke, chief executive officer, and a group of nine additional partners, will continue to manage the day-to-day investment and business operations in their current roles, the news release said.
"The addition of New Holland and its expertise in absolute return-focused investments diversifies AGF Capital Partners' alternatives capabilities and avenues for growth," said Ash Lawrence, head of AGF Capital Partners, in the release.
Separately, Lawrence also told Pensions & Investments: "We see tremendous opportunities ahead as we further expand our footprint in the U.S., offering our partners long-term strategic support, resources and capital to fuel their continued growth."
Radke said in the release that with the support of AGF's "strong platform and broad distribution channels, we can continue to deliver attractive risk-adjusted returns to our clients to help meet their unique portfolio objectives and execute on our strategic business plan."
Based in Toronto, AGF Management had C$43.5 billion ($32.4 billion) in assets under management and fee-earning assets as of Jan. 31. (Fee-earning assets represent assets in which AGF has carried interest ownership and earns recurring fees but does not have ownership interest in the managers.)