CI Financial Corp is to acquires full ownership of alternative fixed-income investment firm Lawrence Park Asset Management (Lawrence Park).
CI currently holds a minority interest in Lawrence Park, a Toronto-based alternative asset manager founded in 2011. Lawrence Park manages approximately CAD600 million of assets specialising in credit-focused strategies, including a hedge fund, a liquid alternatives fund and an ETF.
“The Lawrence Park team has decades of experience in fixed-income markets and alternative investing, and has been a valued partner for CI since 2012. We are thrilled to finally bring that expertise in-house,” says Kurt MacAlpine, CI Chief Executive Officer. “Alternatives offer an array of benefits and are becoming increasingly embraced by advisors and investors. Building on CI’s leadership in this category is a priority for us as we modernise our asset management business.”
“We share CI’s commitment to alternative investing and are excited to be part of the continued development of innovative mandates in this space,” says Andrew Torres, Founding Partner and Chief Executive Officer of Lawrence Park. “We look forward to integrating into the CI Global Asset Management organisation, with its extensive resources, research capabilities and distribution opportunities.”
Following the completion of the transaction, the Lawrence Park team will continue to manage its current funds: CI Lawrence Park Alternative Investment Grade Credit Fund, which is available as a liquid alternative mutual fund and ETF (TSX: CRED, CRED.U), and Lawrence Park Credit Strategies Fund, a hedge fund available to accredited investors. The team’s investment approach will not change.
Lawrence Park employs a simple but proven relative value approach to identify and profit from inefficiencies in global corporate bond markets (Canada, US, and Europe) and utilises a disciplined active portfolio management process. This involves extensive attention to risk management, including hedging strategies against rising interest rates, currency, and selected credit risk. Using this investment process, Lawrence Park seeks to enhance yield, reduce volatility, and deliver consistent returns to investors in varying interest rate and credit environments.
The Lawrence Park transaction is expected to close in the second quarter of 2021, subject to regulatory approval and other customary closing conditions.
