TD Group forms Canada’s largest manager with $605m Greystone buy

Toronto-Dominion Bank Group has acquired Canadian fund manager Greystone Managed Investments for C$792 million ($605.2 million; €522 million), including its Greystone Infrastructure Fund.

The deal includes C$105 million of seed capital and gives Greystone a C$730 million value. Greystone shareholders will be given TD Bank common shares at 30 percent of the net purchase price, with the remaining balance payable in cash considerations, according to a statement.

The acquisition of Greystone’s C$36 billion portfolio will make TD Bank’s asset management division Canada’s largest money manager at C$357 billion, the statement added.

“We continually look for opportunities to strategically grow our North American business to offer clients a superior wealth management experience,” Leo Salom, TD Bank’s head of wealth management and insurance, said. “Greystone’s leadership in alternative investments is a perfect complement to TDAM’s traditional investment products.”

While Greystone’s name is changing to TD Greystone Asset Management, its headquarters in Regina, Saskatchewan, will remain the same. It is unclear if Greystone’s management will remain in place.

The firm did not respond to a request for comment.

Greystone’s infrastructure group, led by Jeff Mouland, launched in 2014 and has invested mostly in renewable energy assets. The group manages the open-ended Greystone Infrastructure Fund, which is unique in that it charges no carried interest on investments, according to the firm’s website. In February, Greystone acquired a 100 percent equity interest in a 7MW power plant in British Columbia, which sells electricity to local utility BC Hydro.

TD Bank’s acquisition is subject to regulatory approvals and is expected to close in the second half of 2018.