AGF Private Capital Inc. to Make Strategic Investment in Kensington Capital Partners Limited
15 Gennaio 2024 - 2:00PM
AGF Private Capital Inc. – AGF Management Limited’s (AGF)
private markets business – has signed definitive agreements to
acquire a majority interest in Kensington Capital Partners Limited
(Kensington), one of Canada’s leading alternative investment firms,
as part of AGF’s strategic imperative to grow its private markets
business.
Founded in 1996, Kensington has $2.6 billion in assets under
management and an impressive 27-year history of successful
performance and growth. The 40-member team has a proven track
record of success managing private equity investments across
mid-market buyout and growth strategies, and venture capital.
Kensington employs a hybrid investment strategy across Fund of
Funds, co-investments and direct investing, providing investors
with well-diversified exposure to private markets. The company also
has a history of innovation stemming from the development and
launch of Canada’s first open-ended private equity fund over 10
years ago, the Kensington Private Equity Fund.
Kensington will retain its investment and operational
independence as part of AGF and will receive significant strategic
support from AGF as part of the relationship. AGF’s strategic
investment aims to accelerate the growth of Kensington’s business
while preserving the core values and entrepreneurial culture that
has driven the success of Kensington’s investment programs to date.
Kensington’s three Senior Managing Directors, Tom Kennedy, Richard
Nathan and Eamonn McConnell, will continue to manage the business
in their leadership roles, working closely with Ash Lawrence, Head
of AGF Private Capital, and the Kensington Board of Directors.
“We are very excited to partner with Kensington as we further
build out our diversified private markets business,” said Ash
Lawrence, Head of AGF Private Capital. “Kensington is a
well-positioned private equity investment firm with an established
brand and proven track record of performance. They have strong
relationships that fit well within AGF's target channels and have
built a growth-oriented business that mirrors AGF’s goal of
accelerating the growth of our private markets business.”
AGF Private Capital’s strategic vision is to continue to build a
best-in-class private markets business offering a diversified range
of innovative solutions that meet the unique needs of financial
advisors and their investors, family offices and institutions. The
growth of the firm’s private markets business will further expand
AGF’s investment capabilities and increase management and
performance fee revenues, all of which are expected to contribute
to earnings growth. The addition of Kensington and its expertise in
private equity adds to AGF Private Capital’s existing private
credit strategy and alternatives capabilities, expanding its
channels of growth. AGF Private Capital’s fee-earning assets are
expected to grow to $4.6B after the closing of the transaction.
“AGF Private Capital’s strategy is the ideal catalyst for
Kensington's further growth as we look to open doors to new
strategies, relationships and regions,” said Tom Kennedy, Chairman
and Senior Managing Director, Kensington. “AGF‘s size, scale,
reputation and capital to invest in our growth lends the
credibility and backing we need as we look to expand our
investments, including the launch of additional innovative
investment products.”
As part of the AGF family, Kensington will benefit from the size
and scale of AGF’s $42.8B AUM business, its broad distribution
reach, and access to its product development expertise and
operating infrastructure. Kensington has looked at expanding into
the U.S. and overseas markets, and AGF’s established relationships
and distribution reach into those regions makes AGF the ideal
partner to support the acceleration of Kensington’s growth
initiatives.
The transaction is expected to be accretive to future adjusted
EPS with the closing to occur in fiscal Q2 2024 subject to the
receipt of certain regulatory approvals and closing
conditions.
Under the terms of the definitive agreements:
- AGF will make a strategic investment
of $45 million and acquire a 51% ownership interest in
Kensington.
- Kensington employees will maintain a
49% ownership interest in the firm, with ownership broadly held by
Kensington’s three Senior Managing Directors.
- If certain near-term growth targets
are achieved Kensington will receive an additional earn-out
payment.
- Under the leadership of the Senior
Managing Directors, Kensington will maintain its investment
decision making independence and will continue to operate as a
distinct operating entity under the Kensington brand.
- Ash Lawrence, Head of AGF Private
Capital, Judy Golding, AGF’s President and Head of Global
Distribution, and Ken Tsang, AGF’s Chief Financial Officer, will
join Kensington’s three Senior Managing Directors on Kensington’s
Board of Directors, with Ash Lawrence becoming Chairman.
Stikeman Elliot LLP acted as legal counsel and National Bank
Financial Inc. acted as financial advisor to AGF. Goodmans LLP
acted as legal counsel to Kensington.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent
and globally diverse asset management firm. Our companies deliver
excellence in investing in the public and private markets through
three distinct business lines: AGF Investments, AGF Private Capital
and AGF Private Wealth.
AGF brings a disciplined approach, focused on incorporating
sound, responsible and sustainable corporate practices. The firm’s
collective investment expertise, driven by its fundamental,
quantitative and private investing capabilities, extends globally
to a wide range of clients, from financial advisors and their
clients to high-net worth and institutional investors including
pension plans, corporate plans, sovereign wealth funds, endowments
and foundations.
Headquartered in Toronto, Canada, AGF has investment operations
and client servicing teams on the ground in North America and
Europe. With nearly $43 billion in total assets under
management and fee-earning assets, AGF serves more than 800,000
investors. AGF trades on the Toronto Stock Exchange under the
symbol AGF.B.
About AGF Private Capital
AGF Private Capital, AGF’s private markets business, combines
diversified private alternative capabilities alongside
participation as a core investor in bespoke and distinct
opportunities that aim to deliver added value for the firm’s
shareholders and clients.
About Kensington Capital Partners
Limited
Founded in 1996, Kensington Capital Partners Limited
(Kensington) is a Canadian alternative asset manager with offices
in Toronto, Calgary and Vancouver. Kensington’s mission is to back
good management teams to build great businesses, and in doing so,
create top-performing investment solutions for investors.
Kensington has assets under management of $2.6 billion, managed
across several active funds covering venture capital, growth equity
and mid-market buyouts.
Media ContactAmanda MarchmentDirector,
Corporate Communications416-865-4160amanda.marchment@agf.com
Grafico Azioni AGF Management (TSX:AGF.B)
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Da Dic 2024 a Gen 2025
Grafico Azioni AGF Management (TSX:AGF.B)
Storico
Da Gen 2024 a Gen 2025
