Cartier Partners up for sale as Caisse pulls out

(May 22, 2003) The parent company of Cartier Partners Financial Group is putting the fund dealer up for sale. The move comes in the wake of a decision by the Caisse de dépôt et placement du Québec to divest its stake in Cartier.

“The Caisse has decided to shift direction and focus on investments where they have a minority interest,” Cartier CEO Dan Richards told Advisor.ca. “They assure us it’s no reflection on Cartier Partners or its investment merits, just a different direction that they’re moving.

“If we had our choice, we would have continued with the Caisse,” Richards adds. “But we’ve been operating under a bit of a cloud since the Caisse began reviewing its investments last fall.”

Richards insists the Caisse move does not reflect negatively on Montreal-based Cartier’s distribution model. “We have a strong and clear commitment to independence. Everything we’ve seen leads us to believe that’s still the right model for us. It has a strong appeal to a significant number of advisors out there.”

Richards expects Cartier’s advisors to take a wait-and-see attitude to today’s announcement. “No one likes uncertainty, so that’s not positive. But my guess is that most advisors will say let’s wait and see who comes forward and will make a decision at that time.”

An investment banker will be hired to solicit bids for Cartier. Richards expects an initial deal could be reached within three months. “We expect substantial interest,” he says. “We’ve already had a fair number of inquiries, even before the announcement.”

Possible suitors include Dundee Wealth Management, whose bid for IPC Financial Network collapsed earlier this month amid regulatory complications.

What do you think of this latest development? What does the future hold for Cartier Partners and its advisors? Share your thoughts or ideas with your peers in the “Free for All” forum of the Talvest Town Hall on Advisor.ca.

Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca