Fiera Capital Corporation is acquiring Clearwater Capital Partners, a Hong Kong-based asset manager that’s focused on Asian markets, a release from Fiera said Thursday.
Clearwater is privately held and employee-owned, with US$1.4 billion in assets under management. Those assets, which will be added to Fiera Capital’s private alternative investments division, will complement Fiera’s private alternative investment strategies, the release said.
“The transaction establishes Fiera Capital’s Asia-Pacific footprint […],” said Vincent Duhamel, Fiera’s global president and COO, in a statement.
Robert Petty and Amit Gupta will continue to lead Clearwater as co-CEOs and CIOs.
Clearwater specializes in core private credit investment strategies such as direct lending, stressed credit and distressed and special situations, the release said. Its five offices across Asia-Pacific and the U.S. are in Hong Kong, Singapore, Seoul, Mumbai and Connecticut.
At closing, subject to adjustments, Fiera Capital will pay US$12 million in cash and will issue US$9 million in Fiera Capital Class A subordinate voting shares. Additional contingent payment and earnout considerations of up to US$44 million will be paid over five years, based on the achievement of financial milestones. The acquisition is expected to be slightly accretive to earnings in 2019.
It’s expected to close over the coming months, subject to regulatory approvals and approval of the TSX.