Integrated Asset Management is to sell its wholly-owned subsidiary, BluMont Capital, to Arrow Capital Management.
The closing of the transaction is subject to, among other things, receipt of all necessary approvals of applicable securities regulatory authorities. Pending approvals, the parties expect the transaction to close in the last calendar quarter of 2013.
The proposed sale of BluMont to Arrow will allow IAM to focus exclusively on its growing institutional business, which comprises approximately 85 per cent of IAM’s current assets under management, while complementing Arrow’s existing line-up of investment solutions to both Canadian and international clients. IAM intends to build on its core asset classes of real estate and private corporate debt with new products and new asset classes.
”Despite the exceptional investment track record of all BluMont funds, and in particular those funds managed by Veronika Hirsch and Alex Ruus, the challenging retail environment led us to the decision to combine BluMont with a larger high quality alternative asset company; particularly one with whom we can have a relationship going forward with other products,” says Victor Koloshuk (pictured), the chairman and chief executive of IAM.
“Bringing BluMont’s stable of funds and pedigree of portfolio managers into the Arrow family greatly enhances Arrow’s mandate of providing unique, actively managed investment solutions to a wide array of investors,” says Arrow chief executive James McGovern. “BluMont’s roster of investment funds is a natural extension of Arrow’s current product line-up.”
BluMont is IAM’s retail alternative asset management subsidiary and provides mutual funds and other product solutions to retail investors primarily through the Exemplar Portfolio of funds. BluMont’s AUM were approximately USD260m as at 31 August 2013. All of the portfolio managers and advisors, including Veronika Hirsch, Alex Ruus, Capital Innovations and Integrated Managed Futures, will continue to provide services to their respective funds.
“The Exemplar Portfolio of funds produced excellent returns to investors since the launch in 2008. With Arrow’s support and expertise, more investors will become aware of these attractive funds,” says James Wanstall, BluMont’s chief executive.
Founded in 1999, Arrow is an employee-owned company focused on alternative asset management and manager selection. Its platform provides access to investment funds across a range of asset classes, strategies and both single- and multi-manager portfolios.
Upon closing, Arrow will have approximately USD1.3bn in assets under management, including its joint venture with Generation Asset Management based in London, England.
IAM is a Canadian alternative asset management companies, with approximately USD1.9bn in assets and committed capital under management in private corporate debt, real estate, managed futures, private equity and retail alternative investments.
Origin Merchant Partners acted as exclusive financial advisor to IAM with respect to this transaction.