Ronald Calvert

Munro Partners (Munro) and CI Global Asset Management (CI GAM) has announced an agreement under which Munro will acquire GSFM Pty Limited (GSFM), CI GAM’s Australian investment fund management affiliate.

As part of the transaction, Toronto-based CI Financial Corp., CI GAM’s parent company, will receive an increased minority ownership interest in the Munro business.

The deal deepens the relationship between Munro and CI GAM and positions the firms for a new phase of growth in both Australia and Canada. Munro currently has A$8.6 billion in assets under management, serving as investment manager in Australia with products being distributed by GSFM, and as portfolio advisor to funds distributed in Canada by CI GAM.

In addition to the Munro funds, GSFM distributes a diverse range of investment funds sub-advised by CI GAM and several high-quality third-party investment firms.

Once the acquisition is completed, GSFM’s Australian distribution team and funds management operations will be integrated with the Munro team and will continue to distribute GSFM funds. Munro will also add resources to the combined firm’s Australian client service and distribution functions, providing enhanced support to its intermediary partners and investor base.

Ronald Calvert, Chief Executive Officer of Munro Partners, said the transaction creates the right long-term outcome for clients, advisers and employees by aligning distribution and investment management.

“Strategically, we can continue to grow the Australian business in a more sustainable way by investing in the skills and capabilities of the distribution team and aligning the GSFM business more closely with Munro’s partnership model.”

There will be no changes to Munro’s investment management team, investment philosophy or investment process as a result of the transaction.

Marc-André Lewis, President and Chief Investment Officer of CI GAM, said the transaction reflects the strength of the relationship that CI GAM and Munro have built over many years. GSFM has been distributing Munro funds since 2017.

“This transaction creates a stronger firm with a more diversified, scalable platform that is well positioned for continued growth in both the Australian and Canadian markets,” Mr. Lewis said.

Transaction highlights

• Munro will create a stronger, more integrated Australian investment and distribution platform through the addition of GSFM.
• Munro will continue to distribute GSFM funds.
• As a result of the transaction, Munro will put additional resources into its Australian distribution, providing a higher level of service for investors and intermediary partners.
• CI GAM’s parent will increase its minority interest in the Munro business, deepening their strategic alliance and commitment to long-term growth in both Australia and Canada.
• CI GAM will continue to distribute funds sub-advised by Munro in the Canadian market.

The transaction is conditional on receipt of customary regulatory approvals and is expected to be completed in the fourth quarter of this year.

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Damien McIntyre

GSFM, with CI Global Asset Management (CI GAM) as investment manager of the underlying funds, has launched the CI Global Private Markets Growth Fund and CI Global Private Markets Income Fund in Australia, which respectively invest in multi-manager, open-architecture funds-of-funds seeded by, and managed by CI GAM. The strategies are available to institutional, wholesale and family office investors.

CI GAM is one of Canada’s largest investment management firms and an affiliate of GSFM. Founded in 1965, it offers a comprehensive selection of traditional and alternative strategies to individual and institutional investors.

GSFM CEO Damien McIntyre says the interest in private markets is growing among Australian investors, but that not all private market funds are created equal.

“The underlying funds’ size provides a significant competitive advantage. This immediately gets the GSFM funds to scale, providing access to a range of superior opportunities and attractive pricing that is not available to smaller funds.

“With as little as a $50,000 investment in a CI Private Markets Fund, Australian investors can access a curated selection of leading private markets funds across all five major private market sectors, with active portfolio management and disciplined rebalancing. This provides immediate diversification by manager, vintage and geography – an outcome that is incredibly hard to achieve if you don’t have the scale to access and the ability to evaluate the world’s top-tier managers,” says McIntyre.

Marc-André Lewis, chief investment officer at CI GAM, says these funds have removed the traditional barriers to private market investments, such as long lockups and high minimum investments requirements.

“The CI Global Private Market Funds offer Australian investors the ability to not only invest outside of public markets, but into a multi-manager and multi-sector portfolio of private assets to better diversify their private market allocation.

“Private markets are expected to grow to around US$30 trillion by 2029, making this asset class hard to ignore for investors. GSFM’s clients are showing heighted interest in private market investments, given this expected growth from the asset class and the need to diversify investments outside of public markets.

“Both strategies have a strong track record. They are fund-of-funds solutions that provide exposure to a diversified set of private market funds managed by leading and emerging private market managers,” says Lewis.

McIntyre adds: “The CI Global Private Markets Funds are supported by a team of dedicated and experienced private market specialists that focus on manager sourcing, due diligence and ongoing manager oversight.

“Until now, Australian investors have struggled to implement the same asset allocation discipline in their private investing as they do on the listed side. Everyone believes in diversification but it’s difficult to get access to the best managers in the world, let alone understand how to combine them efficiently.

“These funds now give Australian investors the opportunity to diversify properly across the entire private markets universe – not just pick a few well-known brands and hope they all fit together,” says McIntyre.

The CI Global Private Markets Growth Fund is designed to provide long-term capital growth. It primarily invests in a globally diversified portfolio of private equity, venture capital, private credit, private infrastructure, private real estate and other private market funds.

The CI Global Private Markets Income Fund is designed to provide similar returns to public markets with far less volatility. It primarily invests in income-producing assets including private credit, private equity, private real estate, private infrastructure and royalty funds.

Ratings from Lonsec and Genium Investment Partners will be made available later in Q2.

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