Toronto, Ontario--(Newsfile Corp. - December 18, 2023) - Lorne Park Capital Partners Inc. (TSXV: LPC) ("LPCP") is pleased to announce that it has, through its wholly-owned subsidiary, Bellwether Investment Management USA, Inc. ("Bellwether USA"), closed an acquisition of 100% of the membership interests of Fulcrum Equity Management, LLC ("Fulcrum"). Fulcrum is a Texas limited liability company, registered with the Securities and Exchange Commission as an investment advisor, and holds approximately U$190 million in assets under management. This transaction is at arm's length and no securities are being issued by LPCP.
The membership interest purchase agreement ("MIPA") provides that Bellwether USA will acquire 100% of the membership interests of Fulcrum in exchange for consideration of U$2,150,000, to be paid by Bellwether USA as follows: U$537,500 on closing, and U$537,500 following each of the first, second and third year anniversaries of closing, in each case subject to adjustment as provided in the MIPA. In addition, there may be an additional payment due following the third anniversary from closing, which will be equal to the trailing 12 months revenue less direct expenses relating to specific potential new business opportunities.
Fulcrum, established in 2011 by Craig Love, represents a cutting-edge turnkey asset management platform meticulously crafted by seasoned advisors. This innovative platform emerged in response to a recognized need for a comprehensive, streamlined approach to the investment and client management process.
Mr. Love expressed his vision for Fulcrum, stating, "My goal is to simplify the many challenges advisors face when navigating multiple technology platforms in the management of complex client relationships. We've successfully realized this vision by collaborating with leading fintech providers, resulting in an integrated end-to-end solution that encompasses every facet of the investment management process."
Mr. Love emphasized the partnership with LPCP, underscoring how this alliance broadens Fulcrum's access to a diverse team of investment professionals and provides growth capital. He continued, "This new partnership not only enhances the support for clients and advisors but also propels the overall growth trajectory of the business."
"We are excited to welcome the Fulcrum team and we look forward to working together to continue to deliver outstanding service and an expanded investment offering" said Robert Sewell, President and CEO of LPCP. "As we advance our growth initiatives and expand in the US sunbelt, this partnership supplies crucial resources for building out our US platform, serving as a dynamic engine for growth in the RIA industry."
On closing, Fulcrum will become a subsidiary of Bellwether USA and will continue to operate as a registered investment advisor. Mr. Love will remain as President and Chief Compliance Officer of Fulcrum and will assist Bellwether USA with its corporate growth strategy.
About Lorne Park Capital Partners Inc.
LPCP was created to bring together boutique investment management and wealth advisory firms in order to deliver robust, cost-effective investment solutions to affluent investors, foundations, estates and trusts. LPCP's unique strategy creates better alignment between investment managers and wealth advisors while providing them with additional resources to accelerate their growth. LPCP wholly owns Bellwether Investment Management Inc., Bellwether Estate and Insurance Services Inc., and Bellwether Investment Management USA. Inc.
For further information, please contact:
Robert Sewell
Chief Executive Officer
Lorne Park Capital Partners Inc.
investor.relations@lpcp.ca
(905) 337-2227
Cautionary Notes
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking information may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", "plan", and other similar expressions. Forward looking information in this news release includes, without limitation, LPCP's objectives, goals and future plans. Forward-looking information addresses possible future events, conditions and financial performance based upon management's current expectations, estimates, projections and assumptions. In particular, the forward-looking information contained in this news release reflects assumptions about the timing and results of the amalgamation and regulatory approvals. Management of LPCP considers the assumptions on which the forward-looking information contained herein are based to be reasonable. However, by its very nature, forward-looking information inherently involves known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such information. Such risks include, without limitation, changes in economic conditions, applicable laws or regulations. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. LPCP disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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