The deal is expected to add almost $7bn to Guardian’s assets under management

Guardian Capital

Guardian Capital plans to acquire US-based asset management firm. (Credit: Pixabay/Gerd Altmann.)

Guardian Capital Group, a Canadian investment and asset management company, has signed an agreement to acquire 70% stake in Agincourt Capital Management for an undisclosed amount.

Agincourt is a Richmond, Virginia-based investment management firm, which was founded in 1999. The firm has a wide range of institutional clients.

The deal is expected to close in the fourth quarter of this year, subject to regulatory and other approvals and customary closing conditions.

Through the acquisition, Guardian Capital is expected to add nearly $7bn to its portfolio of C$31.2bn ($23.6bn) of assets under management, thereby further diversifying its portfolio in terms of geography and investment solutions.

Agincourt has developed an expertise in managing high grade bond portfolios, both in core US fixed income investment mandates and in portfolios that invest across the maturity spectrum.

Guardian president and CEO George Mavroudis said: “We’re very pleased to partner with the Agincourt principals and to continue to grow our presence in the United States. They have an excellent pedigree, time tested and proven over the more than 20 years they have been in business. It’s clear that our firms share many of the same cultural values and that adding a firm of this quality to Guardian’s group of companies supports our strategic intent.

“The purpose and execution of this transaction has very strong parallels with Guardian’s acquisition of a majority interest in Salt Lake City-based Alta Capital Management early in 2018. The success of that partnership, and the same alignment we see in joining with Agincourt, gives us confidence in advancing our US strategy.”

As of this June ending, Agincourt has built an investor base to the level of about $7bn in assets under management. It will continue to provide investment services to US investors after the deal is closed.

Agincourt shareholders plan to re-invest in Guardian’s shares

The owners of Agincourt have also agreed to re-invest a portion of the proceeds from the sale into Guardian’s shares, in order to retain a significant long-term ownership interest in the American investment firm.

Agincourt managing director Patrick O’Hara said: “Agincourt Capital is excited to join the Guardian group of companies. Our respective cultures, goals and investment philosophies are very much aligned. Agincourt will remain a leading US investment management firm, now benefiting from the support of Guardian’s significant financial and operational resources.

“The partnership with Guardian ensures that Agincourt Capital’s principals will remain employee-owners of the firm. We see an increasingly bright future in which our partners and staff will thrive, enabling us to better serve and share in continued successes with our clients.”