Guardian Capital Group Limited is to acquire a significant majority interest in Alta Capital Management, an investment management firm based in Salt Lake City, Utah, USA.
Under the agreement, Guardian will acquire 70 per cent of Alta. The consideration to be paid on closing is USD45 million, with additional contingent amounts of up to USD10 million payable over four years from closing. The transaction is expected to close in early 2018, subject to regulatory approvals.
The acquisition, which is expected to add over USD3 billion to Guardian’s assets under management, is in line with its strategic plan to add to Guardian’s presence and distribution network in the United States, further diversifying the firm’s assets under management by geography and investment solutions.
“We’re very pleased to partner with the Alta principals to build on our desired commitment to strengthen and enhance our presence in the United States. Very importantly, our firms share the same cultural values and we are thrilled to be adding a firm of this quality to the Guardian Capital group of companies,” says George Mavroudis (pictured), Guardian’s President and Chief Executive Officer. “Serving a common client profile of retail wrap intermediaries, institutional and private wealth clients, the combined organisation will enjoy greater scale, which is critical to being competitive in today’s investment industry.”
Alta manages US equity and balanced investment mandates, with approximately USD3.2 billion in assets under management as of 30 September, 2017. Following the completion of the transaction, Alta will continue to provide its leading investment services to US investors. Alta’s owners are demonstrating their confidence in the combined company by investing a significant portion of the proceeds of sale in Alta-managed investment strategies and retaining a significant long-term ownership interest in Alta.
“Alta Capital is excited to join the Guardian group of companies,” says Michael Tempest, President and Chief Investment Officer of Alta. “Our respective cultures, goals and investment philosophies are uniquely aligned. Alta will remain a leading US investment management firm, now benefiting from the support of Guardian’s significant financial and operational resources. This strategic partnership with Guardian ensures that Alta Capital’s principals will remain employee-owners of the firm and enables our partners and staff to better serve our clients and plan for our increasingly promising future.”
Moving forward, Alta and Guardian will continue to share in and be driven by their commitment to excellence in high conviction, active investing, and to working in partnership with our clients to help them meet their financial goals.
Cambridge International Partners LLC served as financial advisor to Alta. Guardian was represented by Pryor Cashman LLP and Baker & McKenzie LLP and Alta was represented by Faegre Baker Daniels LLP.