Equitable Bank parent Equitable Group (TSX:EQB) announced it is acquiring a 75% stake in alternative asset manager ACM Advisors.
Financial details of the cash and share transaction were not immediately made available.
Vancouver-based ACM, which had $4.8 billion in assets under management as of September 30, 2023, will operate as an independent subsidiary of EQB, which is based in Toronto.
It is expected to be accretive to EQB’s earnings per share in the first year, the company said.
“The addition of ACM Advisors, one of the most well-respected alternative fund managers in Canada with a focus on commercial assets, brings EQB an exciting platform for expansion with new capabilities,” EQB CEO Andrew Moor said in a statement.
“ACM's pooled funds expertly invest in curated commercial real estate mortgages to deliver best-in-class long-term returns for its clients. This is an asset class EQB knows well since we have provided financing to commercial clients for more than 50 years within Equitable Bank.”
The acquisition is expected to close before the end of 2023, subject to regulatory approval.
EQB shares fell on the news, down 3% at C$73.25 in early trade on Tuesday.
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