GSFM, an Australian wealth manager, has acquired a 49% stake in Redpoint Investment Management, a boutique quantitative equities specialist, for an undisclosed price.
Redpoint’s management will hold on to the remaining 51% stake, said GSFM, which is majority owned by Canada-based CI Financial.
GSFM acquired the stake in the boutique fund manager from MLC Asset Management (formerly NAB Asset Management), which is said to have given the initial backing and support capital to grow the company.
GSFM and Redpoint, put together, will manage more than A$17bn ($11.66bn) of assets under management.
Established in 2011, the Sydney-based Redpoint is said to employ a quantitative approach for investing across listed asset classes, which includes Australian and global equities, global infrastructure, and global property. The boutique global equities manager has nearly A$10bn ($6.86bn) in assets under management.
How the acquisition of stake in Redpoint will help GSFM
GSFM CEO Damien McIntyre said: “GSFM is focused on identifying under-serviced investor needs and marrying this with high quality investment solutions.
“We see demand in the Australian market for quantitative solutions and Redpoint brings a highly credible and experienced team to provide such strategies.”
GSFM specialises in marketing funds managed by local and international managers to Australian and New Zealand institutional and Australian retail investors. The company holds nearly A$7.4bn ($5.08bn) in funds under management.
Redpoint CEO Max Cappetta said: “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.
“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.”
According to CI Financial, since its acquisition of a majority stake in GSFM in 2016, both companies have collaborated to bring in portfolio managers to new products and markets. Cambridge Global Asset Management, a unit of CI Investments, currently manages a global small companies fund for GSFM.
