CI Financial has struck a deal to acquire a "significant minority interest" in Lawrence Park Capital Partners Ltd., an alternative asset manager focused on fixed-income and credit strategies.
CI's ownership stake in LP Capital Partners is subject to receipt of securities regulatory approval.
"In Lawrence Park, we have identified an exceptional opportunity for growth and a firm that can benefit from CI's support," said Stephen A. MacPhail, CI president and CEO. "CI is always seeking to partner with superior portfolio managers across our business, and alternative investing, with its specialized and distinct strategies, is becoming increasingly attractive."
The firm was founded by David Fry, its CEO, and Andrew Torres, its chief investment officer. The investment team includes Peter Metcalfe and John Young.
"We are pleased to partner with one of Canada's largest and most successful asset managers, with a prominent and trusted brand and industry-leading expertise in portfolio management, administration and client service," said David Fry, CEO of Lawrence Park. "This partnership will accelerate our growth plans and vastly expand the expertise and service backing our firm and the fund."
Lawrence Park is launching its inaugural fund, Lawrence Park Credit Strategies Fund, in March. CI will provide administrative services to the fund and assist LP Capital Partners in developing and executing a growth strategy. CI has also made an investment in the fund.
"CI's participation in the Credit Strategies Fund helps us achieve scale and size significantly ahead of our original goals," said Fry. "CI's distribution network will complement our efforts to bring the Fund to the attention of Canadian HNW and institutional investors."
The Lawrence Park Credit Strategies Fund focuses on low volatility returns and capital preservation. The firm describes its process as "utilizing sound risk management, disciplined trading parameters and unique insight into the interconnections between global credit markets."
The fund's managers will take long and short positions within the major global credit markets to create a portfolio with mean reversion potential. Derivative strategies may be employed to hedge downside risk.
"We designed the fund around trade strategies used profitably by banks and hedge funds globally for well over a decade," said Torres. "Our approach of hedging market directional movements from a portfolio of fixed-income investments is designed to deliver superior risk-adjusted returns to our investors."
Lawrence Park Credit Strategies Fund is available to accredited investors only.