Key Takeaways
- • AGF Management Ltd. acquired a 51% majority stake in alternative investment firm Kensington Capital Partners Ltd. for $45 million, with Kensington employees retaining 49% ownership broadly held by three senior managing directors.
- • Kensington Capital, founded in 1996, manages $2.6 billion in assets under management across offices in Toronto, Calgary, and Vancouver, and is positioned to receive additional earn-out payments if near-term growth targets are achieved.
- • AGF's executive team will assume board oversight roles: Ash Lawrence (head of AGF Private Capital) as chairman, alongside Judy Goldring (president and head of global distribution) and Ken Tsang (chief financial officer), joining Kensington's three senior managing directors.
- • The transaction reflects broader consolidation in Canadian asset management, where larger fund managers are acquiring or partnering with private investment firms to expand alternative asset capabilities and launch new products targeting high-net-worth investors.
- • Kensington will maintain operational and investment independence while gaining access to AGF's $42.8 billion AUM platform, distribution infrastructure, and product development expertise for expansion beyond Canada.
Summary
AGF Management Ltd. has completed a strategic acquisition of a majority stake in Kensington Capital Partners Ltd., a Toronto-based alternative investment manager, for $45 million. Under the transaction structure, AGF acquires 51% ownership while Kensington's employees retain 49%, with equity broadly distributed among the firm's three senior managing directors: Tom Kennedy, Richard Nathan, and Eamonn McConnell. The deal includes potential earn-out payments contingent on Kensington achieving specified near-term growth targets.
Founded in 1996, Kensington Capital manages $2.6 billion in assets under management and operates offices across Toronto, Calgary, and Vancouver with a 40-member investment team. The firm specializes in alternative investments and has built a client base primarily within Canada. AGF has committed to maintaining Kensington's operational and investment independence while providing strategic support through its larger platform and resources. This preservation of autonomy is consistent with industry practice in strategic acquisitions of boutique alternative managers.
AGF's Private Capital division is leading the initiative, with senior leadership joining Kensington's board to facilitate integration and strategy alignment. Ash Lawrence, head of AGF Private Capital, will chair Kensington's board, alongside Judy Goldring, AGF's president and head of global distribution, and Ken Tsang, AGF's chief financial officer. These appointments provide Kensington with direct access to AGF's distribution capabilities and product development expertise. According to Kennedy, AGF's $42.8 billion in AUM, combined with its distribution reach and product development capabilities, positions the partnership to support Kensington's expansion beyond Canada and facilitate new product launches targeting the growing high-net-worth retail private markets segment.
The acquisition exemplifies a broader consolidation trend among Canadian asset managers seeking to build alternative investment capabilities. Recent comparable transactions include TD Asset Management's 2018 acquisition of Greystone Managed Investments and Mackenzie Investments' 2020 acquisition of a 49.9% non-controlling interest in Northleaf Capital Partners Ltd. Globally, BlackRock Inc. recently agreed to acquire alternative manager Global Infrastructure Partners for US$12.5 billion, underscoring the sector-wide emphasis on scale and alternative asset expansion. Canadian fund managers have increasingly introduced open-ended or evergreen private market funds to capture demand from high-net-worth retail investors, a strategy Kensington is now positioned to pursue with AGF's backing.
Founded in 1996, Kensington Capital manages $2.6 billion in assets under management and operates offices across Toronto, Calgary, and Vancouver with a 40-member investment team. The firm specializes in alternative investments and has built a client base primarily within Canada. AGF has committed to maintaining Kensington's operational and investment independence while providing strategic support through its larger platform and resources. This preservation of autonomy is consistent with industry practice in strategic acquisitions of boutique alternative managers.
AGF's Private Capital division is leading the initiative, with senior leadership joining Kensington's board to facilitate integration and strategy alignment. Ash Lawrence, head of AGF Private Capital, will chair Kensington's board, alongside Judy Goldring, AGF's president and head of global distribution, and Ken Tsang, AGF's chief financial officer. These appointments provide Kensington with direct access to AGF's distribution capabilities and product development expertise. According to Kennedy, AGF's $42.8 billion in AUM, combined with its distribution reach and product development capabilities, positions the partnership to support Kensington's expansion beyond Canada and facilitate new product launches targeting the growing high-net-worth retail private markets segment.
The acquisition exemplifies a broader consolidation trend among Canadian asset managers seeking to build alternative investment capabilities. Recent comparable transactions include TD Asset Management's 2018 acquisition of Greystone Managed Investments and Mackenzie Investments' 2020 acquisition of a 49.9% non-controlling interest in Northleaf Capital Partners Ltd. Globally, BlackRock Inc. recently agreed to acquire alternative manager Global Infrastructure Partners for US$12.5 billion, underscoring the sector-wide emphasis on scale and alternative asset expansion. Canadian fund managers have increasingly introduced open-ended or evergreen private market funds to capture demand from high-net-worth retail investors, a strategy Kensington is now positioned to pursue with AGF's backing.
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