GSFM has acquired a 49 per cent equity stake in boutique quantitative equities specialist Redpoint Investment Management from MLC Asset Management.
Redpoint management will continue to control 51 per cent of the business with the two firms combined to look over $17 billion.
Upon completion of the sale, Eric Smith, chief investment officer and co-founder of Redpoint will step down from his role as CIO, however he will remain a member of the board and a senior adviser to the business.
Ganesh Suntharam, co-founder and leader of Redpoint’s portfolio and trading functions, will take over as CIO.
Redpoint chief Max Cappetta said the acquisition provided opportunity for his business.
“GSFM’s acquisition of a 49 per cent equity stake in the business will allow the Redpoint team to focus on investment management, while also introducing our funds to a wider audience through GSFM’s dedicated, focused and specialist distribution capability,” Mr Cappetta said.
“As one of Canada’s largest financial institutions, GSFM’s parent – CI Financial – provides the potential opportunity for Redpoint to expand its international footprint in the future.”
Damien McIntyre, chief executive of GSFM said his firm is focused on identifying under-serviced investor needs.
“We see demand in the Australian market for quantitative solutions and Redpoint brings a highly credible and experienced team to provide such strategies,” Mr McIntyre said.
“This transaction opens up further opportunity to expand the number of solutions we are providing to our clients in the Australian market.
“GSFM currently has seven fund managers, each offering a differentiated investment strategy in their specialist asset class. These span Australian equities, global equities, fixed income, volatility and absolute return through global equities.”
The sale brings the company's total fund manager partners to eight.
“After an eight-year journey to establish and grow the business, all shareholders have agreed that Redpoint’s management’s ambitions are best progressed with a new partner,” Mr Cappetta said.
Berkshire Global Advisors acted as exclusive corporate adviser to Redpoint.
Redpoint was established in 2011 and specialises in listed asset classes including Australian equities, international equities, global infrastructure and global property.
MLC Asset Management provided Redpoint’s initial backing and support capital to grow the business to its current position with $10 billion in assets under management.
Meanwhile GSFM specialises in marketing funds looked over by local and international managers to Australian and New Zealand institutional and retail investors, representing approximately $7.4 billion in funds under management.
It is majority owned and backed by CI Financial, one of Canada’s largest independent investment firms.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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