Mackenzie and Great-West acquire Northleaf stake for $241M and up to $486M total consideration

On October 29 2020, Mackenzie Financial Corporation, an IGM Financial Inc. (TSX: IGM) subsidiary, and Great-West Lifeco Inc. (TSX: GWO) announced the closing of the acquisition of a non-controlling interest in Northleaf Capital Partners Ltd. Financial terms were not disclosed at the time

Mackenzie and Lifeco, through an acquisition vehicle 80% owned by Mackenzie and 20% owned by Lifeco, have jointly acquired a 49.9% non-controlling voting interest and a 70% economic interest in Northleaf.

IGM Financial has disclosed that Mackenzie and Lifeco jointly paid $241 million for the stake and will pay up to an additional $245 million in consideration at the end of five years subject to the business achieving certain growth in performance measures over the period.

Mackenzie and Lifeco will have an obligation and right to purchase an additional equity and voting interest in the firm commencing in approximately five years and extending into future periods.

Toronto based Northleaf Capital Partners is an operationally independent, employee-controlled global private markets investor. Northleaf manages US$14 billion in commitments on behalf of public, corporate and multi-employer pension plans, endowments, foundations, financial institutions and family offices.

photo credit: Northleaf