GSFM acquires 49 per cent stake in Redpoint

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MEDIA RELEASE. SYDNEY 18 October 2019: GSFM has completed the acquisition of a 49 per cent equity stake in boutique quantitative equities specialist Redpoint Investment Management (Redpoint).  Redpoint management will continue to control 51 per cent of the business.

The two firms combined will manage over $17 billion.

Redpoint was established in 2011 and specialises in listed asset classes including Australian equities, international equities, global infrastructure and global property. 

GSFM specialises in marketing funds managed by high calibre local and international managers to Australian and New Zealand institutional and Australian retail investors and represents approximately $7.4 billion in funds under management. GSFM is majority owned and backed by the listed CI Financial; one of Canada’s largest independent investment firms.

GSFM has acquired the stake previously held by MLC Asset Management (MLCAM), formerly NAB Asset Management, which provided the initial backing and support capital to grow Redpoint to its strong position with $10 billion in assets under management. 

Damien McIntyre, chief executive officer of GSFM, 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.”

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, focussed 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.” 

Eric Smith, chief investment officer and co-founder of Redpoint will step down as CIO on completion of the sale, and will remain a member of the Redpoint Board and a senior adviser to the business focusing on ESG/Sustainability and Infrastructure strategies.

Ganesh Suntharam, co-founder and leader of Redpoint’s portfolio management and trading functions, will take over as chief investment officer.  This change reflects Redpoint’s desire to elevate its next generation of leadership to drive future growth.

Mr McIntyre said: “The 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 manager partners, 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. This acquisition brings the total fund manager partners to eight.”

Mr Cappetta said: “After an eight-year journey to establish and grow the business, all shareholders have agreed that Redpoint management’s ambitions are best progressed with a new partner.”

Berkshire Global Advisors acted as exclusive corporate advisor to Redpoint.

Transaction terms have not been disclosed.

Since CI acquired a majority stake in of GSFM in November 2016, CI and GSFM have collaborated to introduce portfolio managers to new products and markets. Cambridge Global Asset Management, a division of CI Investments Inc. based in Toronto and Boston, now manages a global small companies fund for GSFM, and Munro Partners of Melbourne manages a global growth liquid alternatives fund for CI Investments.

GSFM was established in July 2007 as a subsidiary of the Grant Samuel Group. In November 2016 CI Financial Corp (CI) purchased an 80 per cent stake in the business. CI is a diversified wealth management firm with fee-earning assets of CAD$176.7 billion (as of 30 June 2019). GSFM specialises in marketing funds managed by high calibre local and international managers to Australian and New Zealand institutional and Australian retail investors.

Since 2007, GSFM has formed alliances with following investment managers to distribute investment products to Australian and New Zealand clients:

  • New York based Epoch Investment Partners, Inc.
  • Tribeca Investment Partners, a successful Australian boutique manager
  • Payden & Rygel, a Los Angeles based independent investment management firm
  • Triple Three Partners Pty Ltd (Triple3) a boutique research and investment management firm
  • Munro Partners, an independent global equity manager
  • London-based Man Group plc
  • Toronto and Boston based Cambridge Global Asset Management

GSFM currently represents approximately $7.4 billion funds under management (as at 30 September 2019). For more information about GSFM please visit the website: www.gsfm.com.au

Redpoint, founded in 2011, is a boutique equities manager based in Sydney.  Redpoint currently manages approximately $10b for institutional and retail clients. The Redpoint ethos is to be a trusted partner and investment guide for clients. Redpoint uses the best ideas from its investment team along with ongoing research to deliver a range of scalable, flexible and enduring outcomes from listed equity investing.

For more information please visit the website www.redpointim.com