Cape Cove Financial Management, a Montreal-based portfolio management firm founded by Robert Audet, announced that it has acquired Calgary-based WealthTerra Capital Management.
This deal will allow Cape Cove to solidify its position as a national Canadian company, stated Cape Cove in a news release. The transaction must now be approved by the Alberta Securities Commission and Quebec’s Autorité des marchés financiers.
Cape Cove, which specializes in exempt markets, mutual funds and discretionary portfolio management, has been offering investment solutions since 2016.
Cape Cove says it has grown rapidly and now has 42 representatives across the country.
“When we decided to increase our presence in Western Canada, we were targeting potential suitors that had the same values as Cape Cove. We found exactly that in Nadine Wellwood and her WealthTerra team,” says President and CEO Robert Audet. .Nadine will continue with Cape Cove as an advisor and will also assume the role of Executive Vice-President (Western Canada). Her main focus will be to help develop the representative and investor base primarily in Alberta and British Columbia.”
To date, Cape Cove has $ 250 million in assets under management.
Danny Bergeron, a mutual fund and exempt products rep, is also the president of Financière Radisson. In an interview with the Insurance Journal, he said he is among the partners who invested capital in Cape Cove.
"Despite the very young age of Cape Cove (the mutual fund and exempt market brokerage operations began in January 2018), we are already present in Quebec, Ontario, Alberta and British Columbia.”
RRSPs and venture capital
Bergeron adds that all the products developed by Cape Cove are eligible for registered accounts (RRSPs, TFSAs, etc.). "Cape Cove has licenses to manage its own funds. We create venture capital. We finance companies with promising projects thanks to private funds," he says.
Bergeron gave the example of corporate bonds to finance Prevtec Microbia. "It's a biotechnology company that has developed pig vaccines to protect weaning pigs from E. coli," he said. The company is a spin-off from the veterinary medicine faculty at the Université de Montréal. Bonds yield 8% per year. The maturity date is December 31, 2021. In addition to the 8% interest, a 10% bonus is payable at maturity. This investment is now closed. "
Cape Cove has also developed a private fund focused on agriculture and food, Agro Tech Ventures 1, said Bergeron. Available in 1 year and 3 year versions, its annual return is 10%.