The Melbourne buyer will fold the distribution team into its own operations after closing
Toronto-based CI Financial Corp will take a larger minority stake in Melbourne growth-equities manager Munro Partners under a deal that hands Munro ownership of CI Global Asset Management's Australian fund management affiliate.
Munro Partners and CI Global Asset Management (CI GAM) said on August 18 that Munro will acquire GSFM Pty Limited (GSFM), the affiliate that distributes Munro products in Australia alongside funds sub-advised by CI GAM and third-party managers.
Three CI GAM funds sub-advised by Munro in Canada are not affected by the transaction, CI GAM said, because Munro continues as sub-advisor.
They are CI Munro Alternative Global Growth Fund, CI Munro Global Growth Equity Fund, and CI Global Climate Leaders Fund.
All three carry both mutual fund and exchange-traded fund (ETF) series.
Munro manages A$8.6bn in assets, according to the joint announcement, acting as investment manager in Australia with products distributed by GSFM and as portfolio advisor to funds distributed in Canada by CI GAM.
GSFM has distributed Munro funds since 2017.
In the release, Munro Partners chief executive officer Ronald Calvert said the transaction aligns distribution and investment management for clients, advisers, and employees.
Calvert said the deal would let the firm grow its Australian business "in a more sustainable way" by building the distribution team and bringing GSFM closer to "Munro's partnership model."
Munro's investment management team, investment philosophy, and investment process will not change as a result of the transaction.
Marc-André Lewis, president and chief investment officer of CI GAM, said in the announcement that the transaction creates "a more diversified, scalable platform" for the two firms in the Australian and Canadian markets.
Lewis said the deal reflects a relationship the firms have built over many years.
GSFM's Australian distribution team and funds management operations will be integrated with the Munro team once the acquisition closes, the two firms said, and will continue to distribute GSFM funds.
Munro will add resources to the combined firm's Australian client service and distribution functions to support intermediary partners and investors.
CI GAM will keep distributing Munro-sub-advised funds in the Canadian market.
The transaction is conditional on customary regulatory approvals and is expected to close in the fourth quarter of this year.
Munro Partners, founded in 2016 and majority owned and controlled by employees, is an Australian-domiciled partnership with offices in Melbourne and Toronto.
