AGF Management Limited announced that it has made a strategic investment in New Holland Capital (NHC) – a New York multi-strategy investment manager with more than $5 billion in assets under management and more than 17 years of experience providing institutional investors with absolute return investment strategies across the liquidity spectrum. And the investment in NHC is a significant step in AGF’s strategy to continue growing AGF Capital Partners — AGF’s diversified alternatives business with capabilities across both private assets and alternative strategies.
Under the terms of the arrangement, AGF will make an initial strategic investment in the form of a note convertible into a 24.99% economic interest in NHC. And the arrangement also provides AGF with the option to increase its ownership stake subsequently.
NHC’s flagship Tactical Alpha multi-PM investment strategy focuses on identifying alpha-generating opportunities in both fundamental and quantitative strategies in liquid markets. And the firm seeks to balance market diversification and capital preservation through absolute return-focused investments. NHC also manages a Special Opportunities strategy that invests in non-correlated niche credit opportunities, including specialty finance and real assets infrastructure. And the firm partners with institutional investors to deliver customized absolute return investment solutions.
NHC will retain operational independence, and the firm’s existing leadership team, led by Scott Radke, Chief Executive Officer, and a group of nine additional partners, will continue to manage the day-to-day investment and business operations in the current roles. Ash Lawrence and the broader AGF team will provide strategic support to NHC, including arrangements to facilitate near-term joint global distribution efforts for their investment strategies and access to AGF’s quantitative investing and data analytics expertise.
The growth of AGF’s alternative business will further expand the firm’s investment capabilities and increase management and performance fee revenues, all of which are expected to contribute to earnings growth.
Massumi + Consoli served as legal counsel to AGF. CBRE / Sera Global served as the exclusive financial advisor, and Simpson Thacher & Bartlett served as legal counsel to NHC in this transaction.
KEY QUOTES:
“We look forward to partnering with New Holland as we continue to build and grow our alternatives business. The addition of New Holland and its expertise in absolute return-focused investments diversifies AGF Capital Partners’ alternatives capabilities and avenues for growth.”
“This investment, on the heels of our recent announcement regarding the proposed acquisition of a majority stake in Kensington Capital Partners Limited, supports AGF‘s strategic vision to build a diversified alternatives business that provides a range of innovative solutions that meet the unique needs of financial advisors and their investors, family offices and institutions.”
- Ash Lawrence, Head of AGF Capital Partners
“We believe that AGF Capital Partners is the ideal partner to accelerate our long-term growth. With the support of their strong platform and broad distribution channels, we can continue to deliver attractive risk-adjusted returns to our clients to help meet their unique portfolio objectives and execute on our strategic business plan. This investment is an exciting and important step forward for our business and clients in the evolution of New Holland.”
- Scott Radke, New Holland Capital’s Chief Executive Officer
