Canada-based EQB has signed a definitive agreement with alternative asset manager ACM Advisors to acquire a 75% interest in the latter in a cash and share deal.

The financial terms of the deal were not disclosed.

ACM Advisors focusses on creating, structuring, and managing pooled Canadian commercial mortgage funds on behalf of pension plans, charitable foundations, corporations, investment funds, and accredited retail investors.

Founded in 1993, company has C$4.8bn in assets under management as of 30 September 2023.

Following the closing of the deal, ACM Advisors will operate as an independent subsidiary of EQB. It will remain separate and distinct from EQB’s fully-owned subsidiary Equitable Bank, a Canadian challenger bank.

ACM Advisors president and CEO Chad Mallow said: “We’re delighted to join EQB as we continue to bring industry-leading asset management services to Canadian investors.

“We believe that a partnership with EQB will further accelerate our growth plans. We’re excited to continue to service new and existing clients while generating leading product solutions under the EQB Inc. brand.”

Through the acquisition, EQB plans to enter into the asset management business. The company also expects to gain specialised capabilities to serve a new set of Canadian customers.

EQB will utilise cash to complete the deal, which is supported by its existing lending facilities. The firm will also leverage a de minimis number of its shares to be issued at the deal’s closing at a price which will be based on the volume weighted average trading price.

EQB president and CEO Andrew Moor 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.

“ACM’s pooled funds expertly invest in curated commercial real estate mortgages to deliver best-in-class long-term returns for its clients.”

Subject to customary conditions and receipt of required regulatory approvals, the deal is anticipated to be completed before the end of this year.